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Show ficcnl problcmo lie Hlicad in Utah 3. A 6 limit on overall property tax increases for local operating purposes following application of the Tax Commission factors. 4. A .75 mill reduction in the basic school levy. 5. A reduction in the legal assessment ratio to 20 reasonable fair cash value rather than 25. 6. Continuation of sales ratio studies by the Tax ' Commission. 7. Authorization for the Tax Commission to apply adjustment factors in order to equalize assessments among counties, geographic geograph-ic areas and classes of property. prop-erty. 8. Discontinuation of the state reappraisal program. This package of property tax measures will have a varying effect on the different dif-ferent taxpayers of the state. Some taxpayers in counties that were reappraised in recent re-cent years could experience a reduction in property taxes tax-es this year. It would appear that the tax change package prevented any large increase in the overall property tax burden. Difficulties encountered by the Legislature in balancing balan-cing the state budget for next year are a forerunner of greater fiscal problems expected throughout the 1980's. The favorable economic and demographic conditions that existed in the 1970's have reversed themselves. High interest rates and a general slowdown in the economy eco-nomy have limited revenue growth. At the same time, the resumption of enrollment growth in the public schools is creating new problems in the financing of education. Because of these changes, the 1981 Utah Legislature found it difficult to meet spending demands from existing revenue sources. The outcome was a sharp cutback in the demands of the various spending groups. In addition, the Legislature was forced to abandon the general tax rebate program which was started in 1979 but was temporarily suspended sus-pended in 1980 when state revenues fell below expectations. expec-tations. Despite these problems, the 1981 Legislature was able to balance the state budget bud-get for the com ing year without with-out a major increase in state and local taxes. There were, however, increases in the motor fuel and special fuel taxes, an increase in income tax rates for single individuals, indi-viduals, and an increase in the tax and markup on beer, wines, and liquors. The Governor had counted on $34 million in added school property taxes which would have resulted from adjustment ad-justment factors ordered by the State Tax Commission this year. The Legislature however, refused to go along with this increase in local property taxes, and enacted their own program which contains the following elements: ele-ments: 1. A 1981-82 spending program that represents a sharp reduction from the Governor's recommenda -tions. 2. A 20 reduction in local assessments to offset part of the Tax Commission factoring program . |