Show Sales Tax Income Produces In Vernal City Local sales tax collections produced per cent as much revenue as the property tax In Vernal last year according according ac ac- cording to a special study prepared by Utah Foundation the private tax research research re reo search organization THE REPORT Indicates that the local local lo lo- cal sales tax which has become a major major ma ma- jor source of revenue for many Utah counties and municipalities yielded In revenue to Vernal during the 12 month 12 month 1 period ended February 28 23 1970 If this sum had been raised by a local property tax lax it would have required an increased levy of 20 2026 28 mills 20 2026 28 per 1 1000 assessed valuation la last la-it t year Local sales sal's tax collections for the entire entire en n tire state amounted to last year This included 6 for the cities and towns Imposing the tax and for the 26 counties lev levying leving Ing the tax Foundation analysts note that more than 97 per cent of Utah's Utah s population currently reside In areas which are subject subject sub sub- to the 3 11 of one per cent local sales levy TH THE E LOCAL sales tax was first authorized auth auth- in Utah 11 years yean ago as a means of providing local units with an added source of revenue to meet the growing demand for expanded local government services Many of the major municipal In Utah as well as the nation have been hard pressed to cope with the myriad myriad my my- riad of ot problems created by the trend toward urbanization Although the local sales tax has provided cities and counties counties counties coun coun- ties in Utah with much needed revenue it has by no means solved all of their financial problems nor has it eliminated eliminated increases in other taxes tUes Despite the obvious importance of the sales tax In many local budgets the Foundation report notes that the imposition imposition of the tax has not been accompanied accompanied by corresponding reductions in mill levies by most local units OF THE Ut Utah h cities and towns h having ving a local sales tax 70 Increased their property tax mill rates 34 reduced ed their rates while 41 made no change changeover changeover over the past ten years Of the 26 counties counties coun coun- ties now receiving revenue from the local local lo lo- cal sales tax in Utah only three reduced reduced re reo duc d their county property tax rates while 23 Increased their levies during the past decade The Foundation that Foundation concludes concludes' that the thea S a of one per cent local option sales tax has proven to to be a II supplement rather than a replacement for fOJ the the property tax in most local budgets Although the local sales tax has become increasingly increasing increasing- ly Import Important nt the property tax con contin- contin tin ues as the bulwark of local government finance for the majority of local units in Utah AT THE present time tl the he e local sales saies tax while Imposed by the local unit is actually collected by the State Tax Commission along with the state sales tax and allocated back to the local unit according to the point of origin of the sale salo Over the years a number of or proposals propos als have been made to base the distribution distribution distribution distri distri- on population rather than where the tho tax Is levied and collected Four different Attorneys General however have ruled that such a I change in the distribution of the local sales tax would be in In violation of th the State Constitution |