Show 4 r H tM LOCAL COMMENTARY I Some Counties Plan Us Use Of Sales Tax Not New Here By Sam Taylor Tylor Through newly-enacted newly state law counties and communities in those counties are now able to Increase the states state's sales tax by byk k Si per cent on a local option basis The new money to b be coll collected by businesses and turned over to the State Tax Commission is to be re refunded re re- funded to the areas authorizing authorize ing big Its Hs collection for lor use on lower government levels When the law was Introduced In the State Senate this year S Senate e en n a ate t e President Sherman Lloyd its sponsor argued that problems o of ot I municipal and county finan finan- financing financing c cing clad were becoming becoming be bee E coming so serIous serious ser ser- 1 ious sous that it was a legisla- legisla t i t v ve e obligation obligation obliga obliga- tion lion to provide pro pro- i vide dome ome means means for tor re re- 1 Leif leU The problems pro h 4 are ser ser- i ious sous This is Sam Slim Taylor Tylor shown by the rapid adoption of the new tax by some of the largely populated areas which have been seriously handIcapped handicapped handicap handIcap- ped by lack Jack of revenue Salt Lake City is now planning an entire capital improvement program on the basis of some of the new money It will wUl receive through local sales tax Collection of more than two per cent in sales tax while strongly opposed In many areas is not a new idea for tor Moab In fact tact the ena of the new law will pose pos a question here where residents have be been n paying three per cent on purchases purchases purchases pur pur- chases for several years Business Tax Moab's extra one per cent tax is not officially known asa as asa asa a sales tax It was adopted during the uranium boom fo to meet rapidly Increasing costs of municipal operation and to k e C the flatY t l 4 P business license fee tee the theory the ory being that those businesses business bustness- es doing the largest volumes would be the largest license taxpayers It has been a controversial controversial controversial con con- issue since its ts adoption adoption tion and Is unique in Utah municipal financing since businesses businesses' businesses businesses' bus bus- businesses have b been n allowed to pass the costs on to the con con- sumer aUlner Needless to say ny tins the spending emergency has continued con cou- since the boom and the tax has become another temporary temporary tem tern emergency permanent type of assessment What Now The legislative action this year provides cut clear means of 01 financing municipal operation operation opera opera- tion lion or a portion thereof through a sales tax Through adoption of ot an ordinance or through voters' voters action the local 10 lo cal option could be adopted here as outlined in the new law law- But Dut the problem is the monCy money money mon mon- ey Cy coming in might not be as much as is now being collected by the City of Moab through Its Ita business license tax Since the one per per cent bust ness license tax makes up one of the largest single sources of ot revenue to the City over annually it is easy to 0 see sec that trading our present set up for lor the new one might result in a serious loss Joss of 01 funds funda to the community This leaves one of ot two alternatives alternatives alternatives alter alter- natives either f find nd another source to make up the difference difference differ differ- ence or drastically cut local spending to fit lit within income In light of ot present costs of ot municipal operation nearly double what they 1955 1935 it is pretty easy to see that if we were to follow fonow the lead of Salt Lake City we would be looking for another means of ot collecting revenue The problem has received on one onely only only ly brief discussion so far in Moab and opinions are varied on haw much might be expected expect expect- ed In revenue under the new system It would seem reasonable to attempt to bring our communIty community community ity into focus with accepted methods of operation on a state statewide statewide statewide wide basis Emergency taxes and assessments although necessary necessary necessary essary when a 11 community undergoes undergoes undergoes un un- growth are to g with with us a short time The overwhelming ove support given the sales tax bill in this tats years year's legislature indicates that we are not alone in local finance fin fin- ance once difficulties The question which may mayor or may not be dealt with here is la whether or not Moab can continue its opera opera- opera opera-b tion under the means prescribed ed by the legislature |