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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

Vote NO to Higher Taxes on Tuesday, August 5th!

Polls open at 7:00 AM and close at 8:00 PM. Location is 110 So. Main Street (Maxum building)

Springville City is asking voters to approve a massive $20 million bond to finance the construction of an aquatic center, recreation center, and a public safety/library/city hall center. Estimated tax impact is as follows:

Annual Tax Increases if $20 million Bond is Approved
Property Type
$100,000 Valuation
$200,000 Valuation
Residence
$54.00
$108.00
Business
$98.18
$196.36
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

If approved, this bond will raise the city’s portion of your property taxes by 54%!

The Utah Taxpayers Association urges voters to reject this proposed tax increase for the following reasons:

1. Government should focus on essential needs, not nice-to-have amenities.

President George W. Bush said it best: “Government should focus on a few things, and do them well.” Governments should focus on providing services that are critical to taxpayers like law enforcement, garbage removal, street construction and maintenance, etc. These are services that are critical and needed by all taxpayers. Recreation centers and aquatic parks, on the other hand, are neither critical nor needed by all taxpayers.

2. Proposed tax increase is not economically sound.

Tax increases are not appropriate, especially in a state with the 9th highest state and local tax burden, and are especially inappropriate during a recession when bankruptcies and unemployment are at historic highs. Higher tax burdens lead to lower long term economic growth. Most local governments in Utah are forgoing tax increases due to the recession and the financial problems that families and businesses are facing. No other city, county, or school district in Utah is asking its citizens to approve such an enormous tax hike.

3. Government and taxpayers need to prioritize needs.

Pressure to increase tax burdens on Utah’s taxpayers continues to grow as the state struggles to meet funding for transportation, education, and poverty programs. Under these circumstances, raising taxes to fund non-critical areas such as weight rooms and pools makes absolutely no sense.

4. Government should not compete against the private sector.

The private sector is capable of providing recreation services as evidenced by gyms and water parks in the vicinity. These private sector enterprises pay income, sales, and property taxes. Government should not be using taxpayer resources to compete against taxpaying entities.

5. Holding bond elections in August is bad government policy.

Except for extraordinary circumstances, bond elections should not be held when voter turnout is guaranteed to be low, such as August in a non-general election year. Municipal elections are being held in November, and the city could have saved taxpayer money by combining the bond election with the November election. Local governments hold bond elections in August when no one is paying attention. This is intended to allow a small minority, who will disproportionately benefit at the majority’s expense, to out-vote the majority.

6. Tax dollars should not be used to subsidize the recreation of a minority at the expense of the majority.

Citizens who claim they “don’t mind paying additional taxes” are really saying that they want others to subsidize their recreation. Ample opportunities for recreation exist in the area without one group asking the majority to pay more taxes.

7. Higher taxes reduce jobs.

Many businesses in Springville are struggling to achieve profitability. This includes local small businesses as well as larger employers in the Springville Industrial Park. Increasing taxes leads to reduced profitability which leads to reduced pay raises and possibly layoffs.

8. This tax increase will not pay for itself.

Proponents of taxpayer-funded recreation incorrectly claim that weight rooms and swimming pools “pay for themselves” by reducing crime. Crime is impacted by poverty rates, unemployment, and family stability. If taxpayer-funded pools and gyms really reduced crime and therefore reduced law enforcement costs, then these projects should be funded by diverting dollars currently being spent on law enforcement and not from additional taxes.

Springville City Council was completely wrong to place this issue on the ballot. Voters need to send a loud message that the Council’s fiscal irresponsibility will not be tolerated. Be sure to encourage fiscally responsible taxpayer-friendly voters to make their opinions count on Tuesday, August 5th.


     *Please make copies of this Tax Alert and distribute them to
       residents of the City of Springville.

The Utah Taxpayers Association is a non-profit, non-partisan association working for greater efficiency and economy in government.