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Show Centerville will be big loser if Initiative A OlCd By TOM HARALDSEN CENTER VILLE Voters will determine de-termine today whether the state's sales tax on food is repealed, and if Initiative A passes, many cities and towns in Utah stand to lose plenty of state money. No community stands to lose a bigger proportionate amount than Centerv ille, a fact discussed by Mayor Michael Kjar with city council members recently. Using figures generated by the State Tax Commission's study of the impact of Initiative A, Center-ville Center-ville could lose between $130,000 and $190,000. The council has not taken a public position on the initiative, in-itiative, but did explain the possible effects of such a loss in the City's October newsletter. As is true with most government entities that would be effected by the tax cut, Centerville will have to trim services or raise taxes in other areas to make things balance. Centerville would be hit harder by the initiative than most surrounding communities because over 19 percent per-cent of the city's tax dollars come from sale of food. The Tax Commission study paints a negative picture of the initiative's in-itiative's impact: $90 million in tax losses to state government, another $18.4 million to cities and counties, $4 million to public transit authorities au-thorities and about $600,000 to the Utah Sports Authority. Sales tax on food makes up roughly 10 percent of the state's general fund revenues. In terms of actual dollars, the study says Salt Lake City would lose over $ 1 .7 million in sales taxes, while Bountiful would miss out on $368,000. Centerville is top among the smaller cities in the study, with an estimated loss of $1 87,000. More dramatically, Centerville would lose 19.2 percent of its tax base if the initiative passes. Only one similarly sized community. Cedar City, would lose a higher percentage (25.1). How much will the average Utahn save a year? The study says a family of four making between $20-40,000 $20-40,000 a year will save between $222-252. How such a shortfall would be dealt with by Centerville's leaders is, of course, still unclear. If Initiative In-itiative A passes today, the city council will face the difficult task of v either chopping off services or raising rais-ing taxes. The State Tax Commission Commis-sion report indicates that, in order for cities and towns to recover the lost revenue, taxes in other areas j would have to be raised about two- tenths of a percent on local option I sales taxes, and the state sales tax would need to be increased from 5 to 5.6 percent. The potential change comes at a time when Centerville City is carefully studying its critical needs. , How those areas are addressed will j be determined in large part by what i voters throughout Utah decide at ( the polls today. i ! i |