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Show Sales Tax Produces $2709,213 In Davis Utah's local sales tax produced $2,709,213 in revenue for municipal and county purposes throughout Davis County last year, according ac-cording to an analysis completed by Utah Foundation, Founda-tion, the private tax research organization. THESE collections were equal to a countywide property tax levy of 10.19 mills ($10.19 per $l,000as-sessed $l,000as-sessed valuation). Local sales tax revenue received by Layton in 1977 totaled to-taled $435,340. According to the Foundation study, this was equivalent to an added city property tax levy of 12.84 mills ($12.84 per $1,000 assessed as-sessed valuation). Another 0.78 mills would have been needed to replace the local sales tax revenue now being received by the county government. DURING the 1978 Budget Session, a proposal was made to begin phasing out the sales lax on food. Foundation analysts calculate that such a food exemption would reduce sales tax revenues currently received by state and local units in Utah by about 16 percent. Total revenue loss from such an exemption would amount to $56 million per year throughout the state and would be equivalent to one of the following: L A ONE percent increase in the sales tax rate on all . non-food items. 2. A 25 percent across-the-board rise in individual income in-come tax rates. 1 A property tax increase of 119 mills ($1190 per $1,000 assessed valuation.) By July 1, 1978, twenty-two of the states plus the District of Columbia will have eliminated the sales tax on food. Several of the other states provide for a food tax credit that can be applied against the state income tax. UTAH established a onetime one-time food tax credit of $6 per person in 1973. The credit amounted to $5.9 million and was claimed for 86 percent of the state's population. Foundation analysts indicate in-dicate that Utah probably would have to raise some other tax if a food tax exemption exemp-tion is provided. Although Utah reported substantial slate surpluses in several of the past years, it is unlikely that any large surpluses will be generated in the years immediately im-mediately ahead. THE REPORT notes that the prospect of rising school enrollments, increased retirement re-tirement and social security costs for public employees, a backlog of building needs, the scheduled repayment of authorized bond issues, along with other factors will place considerable pressure on future fu-ture state budgets. In analyzing the local sales tax, the Foundation observed that the local option tax now is imposed in all 29 counties of the state and produced more than $44 million in revenue for local units. At the present time, the local sales tax is allocated on the basis of the locale where the tax is levied and collected. PROPOSALS have been made to change the method of . allocation so that the local sales tax would be distributed according to population. Such a change would require an amendment to the state con-" stitution. Proponents of the change to distribute local sales tax money according to population popula-tion contend that a large part ul ihc revenue received in some of the cities currently is paid by individuals living in other communities or in unincorporated areas. OPPONENTS of !he change, on the other hand, argue that cities mu;i p' -vide many governmental services ,for nonresidents who work, shop or otherwise enju the amenities provided bv the city. As a result, they :aim tint the 1 :.ix paid ;. uch mmresulo.i-. of the itv iiMToly ix-i in burse the t. 'immunity 'im-munity for a small part ui the added costs for such services. |
