Salt Lake Telegram | 1934-07-27 | Page 13 | Cities Oppose Tax on Power

CITIES CITIES OPPOSE TAX TAX ON POWER State Commission Files Test Case Against Lehi to Collect Levy The state slate tax commission Friday sought to learn i if It can collect sales taxes axes from municipalities owning electric power pl plants by filing a test case Lehi city in Fifth district dis dis- court at Provo Twenty-one Twenty Utah municipalities operating op op- op crating plants including Lehi have refused to pay the levy citing constitutional con con- rights They pointed to a section of oC the state constitution stating stat stat- ing ng that property of oC the state slate municipalities counties and school districts is s not noL subject to taxes The amount sought from Lehi plus a 10 per cent penalty and interest interest inter inter- est cst at 1 per cent a month is based on ona ona ona a commission audit of city accounts E Efforts orts to collect taxes from other municipalities will follow i if the commission com corn mission suit is upheld ld it was an an- Other municipalities are Heber Blanding Brigham City Charleston Ephraim Fairview Hoiden Holden Hol Hoi den H Hyrum rum Levan Logan Lagan Mantua Meadow Mcadow Murray Murra Perry Payson Salem alem Spanish Fork Spring City Springville and Wales