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Show Senator Matheson sees no large tax increase By RANDY DANIELS Record Reporter SALT LAKE CITY "I don't look for much, if any, tax increase that will affect the general public," commented State Senator Ivan M. Matheson (R-Cedar (R-Cedar City) on the legislative budget session now in progress at the State's capital. And taxes seem to be the major concern of the senator (representing Beaver, Washington, Garfield, Iron and Kane counties). One of the items that Matheson was working for was a repeal of the area redevelopment act; however, that particular motion was killed before it gained very much support. Several Cedar City officials, including Mayor Robert Linford, have attacked Matheson's proposal and have voiced their disapproval to the senator, according to Matheson. "Let me make myself clear, I'm not opposed to development in Cedar, or any county in the state for that matter, but, as it stands, it's just going to be another tax story which is adverse to the common people," stated Matheson. According to Matheson, $87,000 in taxes which would have gone to the school district, the County and the City now goes to pay redevelopment bonds. This money comes from tax money in the redevelopment district which, if increased, is frozen and the excess goes to pay for redevelopment instead for the schooling, law enforcement, fire and governmental services now provided. "The cost of services is continually rising, and, if the tax money doesn't come in to equal the rise, then possibly, these type of services will have to be cut back," said Matheson. The Senator said so far the Legislature has mostly gone over routine items and that there isn't much to report. However, Matheson is planning on introducing a an ammendment to Article 13 of the Utah State Constitution which will make it possible for cities to tax municipal power utilities that are located outside of city limits. Matheson said his reason for making the proposal is to offset the loss of tax revenue which is in excess of hundreds of m millions of dollars each year and to make it possible for cities to tax the Intermountain Power Project which, as it stands now, is not taxable under the state constitution. To offset these lost taxes, Matheson said the burden will fall on the homeowners, the wage earners, the farmers and small businesses in the state because "if it doesn't pass there are going to be increased taxes, but if it does, then they'll have to pay their own way." According to Matheson, the amendment will likely pass the Legislature. If it does then it will go on the ballot for the vote of the people. "I don't think any individual wants to be ripped off, and there is no reason why all of us should have to bare the impact," stated Matheson. Sonny Richardson, Parowan City power plant operator, shecks the output of Parowan's hydro-electric plant. A IS percent surcharge was recently tacked onto Parowan electic bills, but City officials say it was necessary to keep the electric department operating in the black. |