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Show State-house Report ... Farm Lands Valuation Law Plans Bared at Mouse Committee Meetine? BY C. SHARP Details 0r tlu? proposed law under which ajji-li'iiltiii--al lands are to ho assessed "I' a basis or their value for larni uses rnlher than llicir market value were baivd lH'i'. lfl. The proposed law provisions provis-ions as ajiiix'd upon by the sponsors of the "Clrct-n Belt" amendment to the Stale Constitution approved by tlu electorate Nov. 5, were explained ex-plained at a conference of the State Tax Commission and the House Committoe on Kevenue and Taxation. These provisions include: Land to qualify for the reduced valuation would have to lx not less than five acres in size, with a . ...... , .... , v(, IMJl $";'() a year and must hava been used for agricultural purposes for five years or more. Productive Capacity Taxable valuation wouid be fixed on a basis of production pro-duction capability. An ad-'visory ad-'visory committee on farjn 'land valuations would con-isiyt con-isiyt of representatives of l" t ah State University, the I'tah Agricultural Land Owners Own-ers Assiviation and the Tax Commission. No more than five classifications clas-sifications of agricultural lands for valuation purposes purpos-es would bo established. In the event agricultural lands arc sold for other purposes, pur-poses, their valuation for tax purposes would be increased in-creased for the last three years on a basis of the actual ac-tual sales price. This would tend to discourage speculation. specula-tion. The Utah Agricultural Land Owners Association, which sponsored the Green Belt amendment and which would be given representation representa-tion on the committee to fix farm land valuations, consists con-sists of representatives of the following groups: Owners Group The State Farm Bureau Federation, the Utah and Southern Idaho Farmers Un- ion, the Stale Cattlemen's Association and the State Wool C rowers. The proposed law, now being be-ing drafted, would legalize the present low valuation traditionally fixed on agricultural agri-cultural lands. Ransom Quinn, Tax Commission Com-mission chairman, announced announc-ed at the meeting that the commission is not participating partici-pating in drafting proposed laws to eliminate the inventory inven-tory tax. This was made possible by another amendment amend-ment to the constitution. Some groups, he said, are determined that this tax shall bo wiped out by repeal re-peal elective in 1970. Others Oth-ers favor gradual phasing out of the inventory tax, he said. Big Problem ( One big problem now is apparent in the broad exemptions ex-emptions made possible by the constitutional amendment, amend-ment, he said. The amendment would permit per-mit exemption from taxation taxa-tion of tangible personal property held for sale by merchants, farmers and others. For counties such as Daggett Dag-gett and Wayne where livestock live-stock constitute a sizeablo proportion of all taxable property, exempting livestock live-stock could mean transferring transfer-ring the tax load to real estate. es-tate. Thus, a ranch owner in these counties might be al- iowea exemption ot tax on his livestock but might have to make up the difference in taxes on his real estate. To Prefife Bills Rep. Allan E. Mecham, U-Salt U-Salt Lake, chairman of the House Committee on Reven- ue and Taxation, agreed Willi other members of his committee to sponsor and prel'ile three bills already pi'i pared by the Tax Commission Com-mission in cooperation with Legislative Council attorneys. attorn-eys. One of these bills would revamp stale sales and use tax laws. Paul M. Holt, chief auditor audi-tor for the Tax Commission said this would recoup about $750,000 every two years without hurting taxpayers. Al present, Utah auto dealers deal-ers can sell cars to oul of state customers without charging sales tax. This was intended to allow them to compete wi'lh dealers in adjoining slates who had no sales tax. Sales Tax Everywhere All adjoining states now have sales tax. They also charge use tax on cars purchased pur-chased in Utah without pay. ment of Utah sales tax. By amending the Utah law to charge sales tax on all cars sold here, out of state purchases pur-chases would be exempted from paying use tax in their home states and their transactions trans-actions would enrich Utah. A second bill would changs the oleo tax from a monthly payment basis to a stamp tax similar to the state cigarette cig-arette tax. This is designed to prevent tax evasion. A third bill would allow motor fuel dealers longer time to apply for exemption from paying state tax on fuel exported to other states. Additional indications that a tax increase will be voted by the 1969 Legislature was seen at the Legislative Council Coun-cil meeting Dec. 16. Increase to 25 The council's education committee headed by Sen. Ernest H. Dean, D-American Fork, recommended four alternative al-ternative financing programs to the council. These would range from Hi to 25 ,per cent increases in stale nid for schools. Son. Dean estimated that any of the four plans would require a tax increase. |
