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Show EDUCATION COMMITTEE MESSAGE DEFECTS IN THE TAX INITIATIVES Are you doing your part on the tax initiatives? Dan Jones polls have indicated that if the election were held now, over 50% would vote for the tax initiatives. It will take a grass roots level of communication, neighbor to neighbor, to defeat these initiatives. The LWV recently issued a summary of the effects of the tax initiatives on education, human services and local government. Also, Utah Tax Alert, published by Taxpayers for Utah, gives an accurate summary of the effects. We urge your to use these and other publications using accurate information to persuade your neighbors and friends to vote against the tax initiatives. The tax protesters responsible for the property tax limitation and tax reduction initiatives, inexperienced in writing tax law, have made some alarming mistakes: 1 . They limited the tax on residential property to .75% of fair market value. Apparently, they were unaware that 20% of the fair market value of residential property is exempt in Utah. Thus, the effective rate would be only .60% of fair market value rather than . 75%. This rate is far lower than in other states. Proposition 13 in California limited property taxes to 1%. A rate of .60% would be an impossibly confining straitjacket. 2. The tax protesters limited the tax on "all other property" to 1% of fair market value. Perhaps they mean to say "all other real property," such as business properties, but the wording as stated includes personal property as well. Thus, the tax on personal property such as motor vehicles and business equipment would also be limited to 1%. 3. The effect on school financing is a thorny problem that tax attorneys are now considering. How will the school equalization program and the voted leeway be affected by the provisions? 4. The title of the Tax Reduction Act states that the rate of state income tax is to be reduced to 1986 levels. in 1986, the maximum tax rate was 7 3/4% However, the act goes on to specify that the maximum rate is to be 7%. This glaring contradiction within the act casts doubt on its validity and may require clarification in the courts. 5. The initiatives would have a negative impact on Utah's general obligation bonds, which now have a triple A rating. Standard & Poor's, the nationwide credit rating agency, has already warned that Utah bonds may be downgraded to a lower rating. Passage of the initiatives would damage the credit rating of the state as well as many counties and school districts because of the loss of financial flexibility. Taxpayers would have to spend millions of dollars more to pay off their bonds. --Charlotte Newman Taxation Chair --Laura Landikusic THE NATIONAL VOTER In a measure prompted by cost constraints, the October 1988 issue of The National Voter and the October 1988 issue of Report From The Hill have been cancelled. We regret the need to take this one-time step, but publication of both The National Voter and Report From The Hill will resume with the December 1988 issues. Paid subscribers will have their subscriptions extended by one issue. THANKS TO OUR CONTRIBUTORS!!! KARIL FROHBOESE MAXINE RUESCH WELCOME NEW MEMBERS!!! RITA MILLER 1769 SO. 1700 E. SLC, UT 841 08 487-0525 RUTH HOLLAND 150 W. 7500 SO. (D-6) MIDVALE, UT 84047 562-0236 GENENE SIMPSON 5261 SPRINGHOUSE LANE MURRAY, UT 84107 268-0976 SPEAKERS' BUREAU Many thanks to Gigi Brandt, Madge Fairbanks, Irene Fisher and Pat Brim for fulfilling their speaking engagements in September. --Dorothy Croft Salt Lake Voter The Kinfs En9lish Bookshop 1511 South 1500 Ea~r. 484-9100 Open 10 to 9 Monday-Saturday. 1 to 5 on Sunday -5- October 1988 |
