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TAX ALERT!
From The Utah Taxpayers Association
1578 West 1700 South #201, Salt Lake City, Utah 84104 PH 972-8814 FX 973-2324

TAX ALERT UPDATE!

December 18, 2003

To: All Members in Wasatch County

Re: Proposed Tax Increase

Wasatch County is proposing a 34% increase above the county’s certified property tax rate. This is up from the 9% proposed increase of only a few weeks ago. This massive tax increase is the largest of any major county in Utah this year. The proposed increase will go to the maintenance of the new Wasatch County library and towards spending increases throughout the general fund. With new growth and other factors, the district’s property tax revenue will increase a whopping $1 million over last year’s revenues. Currently, the county’s certified property tax rate is 0.001937. With the increase, the property tax rate will be 0.002587.

Annual Impact of Proposed Wasatch County Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $53.63 increase   $107.25 increase
 Business   $97.50 increase   $195.00 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association is concerned about this proposed tax increase for the following reasons:

1. Despite higher property valuations per capita, Wasatch County’s property tax rate will be higher than the state average. When a county has higher property valuations it can generate more revenue than a county with the same rate and lower valuations. Therefore, since Wasatch County has higher than the state average valuations their tax rate should be lower, but if this proposal is adopted it will be just the opposite.

2. Utah is currently experiencing severe economic problems. Utah’s per capita bankruptcy rate is highest in the nation and is twice the national average. Unemployment is still high. Increased taxes only exacerbate these problems and make it more difficult for businesses to hire and keep employees.

3. In order to stimulate the economy, the federal government has significantly reduced taxes. However, much of this economic stimulus is being reduced by state and local tax increases, such as Wasatch County’s increase.

4. Utah’s total state and local tax burden as a percent of personal income is 9th highest in the nation and is 12.5% higher than the national average. Higher tax burdens lead to lower long term economic growth.

REVISED MEETING SCHEDULE!

Wasatch County will be conducting a Truth-in-Taxation hearing on December 22nd, 2003 at 6:00 p.m. at 25 North Main, Heber City. This is Monday night just three days before Christmas.



     *Please make copies of this Tax Alert and distribute them to
       residents of the Wasatch County.
The Utah Taxpayers Association is a non-profit, non-partisan association working for greater efficiency and economy in government.