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Show Page C-2 - The Springville Herald - December 21, 1994 ssMsittM prevents tar hike A massive property tax windfall wind-fall to local governments across Utah was uncovered and prevented prevent-ed by the Utah Taxpayers Association Associ-ation as this year's tax notices were being printed. Late last month the Utah Taxpayers Association discovered an unauthorized change in the way property tax rates are calculated calcu-lated which would result in an $8.5 million property tax windfall for local governments in 27 of Utah's 29 counties this year. The change, developed and implemented by the Property Tax Division of the State Tax Commission, Com-mission, was immediately appealed ap-pealed by the Taxpayers Association Associa-tion to the State Tax Commissioners. Commis-sioners. After hearing arguments from representatives of the Property Tax Division, the Association of Counties and the Taxpayers Association, the Commission reversed the action of the Property Proper-ty Tax Division and ordered property tax rates be recalculated to prevent the tax hike. This is a tremendous victory for taxpayers. Not only will it reduce property taxes in 25 of Utah's 29 counties by about $8.5 million this year, but it will eliminate perpetual property tax overcharges for years to come. The controversial change centers around the interpretation of a state law which allows local governments to adjust tax rates for changes in the tax base which result from appeals awarded to taxpayers which occur after tax rates are set in June, but before property taxes are actually charged in November. Most local governments set their tax rates in June or August. These local entities determine the necessary revenues to fund their budgets and then calculate the tax rate by dividing the tax base by the amount of revenue needed for their budget. However, after these tax rates are established, many taxpayers are awarded appeals lowering their property value. If no adjustments were allowed, in November, when local entities apply their tax rate to the tax base which is now lower due to the appeals, they wouldn't receive the revenue necessary to fund their current year budget. State law allows local governments govern-ments to take these fluctuations Task force proposes vote on gas tax The Utah legislature's Highway High-way Funding Task Force has come up with a plan to divert up to $85 million of general fund revenues for highway construction construc-tion and then to ask voters to approve an eight-cent per gallon gas tax hike on the 1996 general election ballot. The goal of the task force is to provide approximately $150 million in new highway dollars to begin to meet the state's pent-up demand of unfunded highway projects approaching $2.5 billion. During the first two years, the package would fund $80 to $85 million to highway construction projects with revenues coming from the following sources: - $40 million per year in ongoing ongo-ing revenue from the General Fond, appropriated directly to the Department of Transportation for state highway capacity improvements, im-provements, based on past and Aaron Selanamani Bradley, son of Sharon and Ken Bradley turned one year old on December Decem-ber 11, 1994. His grandparents are Patricia and Ed Bradley of Mapleton and Lotu and Neal Lavea of West Jordon. future growth in General Fund revenues. $30 million per year from either General Fund appropriation appropria-tion or bonding. This funding source would be eliminated if the eight cents per gallon motor fuel and special fuel tax is approved. $5 million or more per year to fund the Utah Highway patrol, appropriated from the General Fund rather than the Transportation Fund. $5 to $10 million in increased in-creased vehicle registration fees by making adjustments for inflation, infla-tion, yet bringing Utah nearer the western states' average fees. The Task Force determined that since about $150 million per year in sales tax revenues are derived from motor vehicle and related sales, it is appropriate to use a portion of these funds as "user taxes." If the eight-center per gallon motor fuel and special fuel tax is approved, an additional $80 million in revenue would be available for highway needs. If the $30 million in General Fund appropriation or bonding is eliminated, elimi-nated, a total $130 to $135 million mil-lion per year in new highway funding would be available beginning begin-ning in Fiscal year 1996-97. The Task Force also recommended recom-mended a change in the Transportation Trans-portation Fund split between the state and local governments from 75 state and 25 local to 70 state and 30 local. Along with the increase in the class B and C road account, state and local governments would make previously previ-ously recommended highway jurisdictional transfers. It was also recommended that there be added an internal performance perfor-mance audit function within the Department of Transportation to ensure that most efficient and effective use of tax dollars. The killer whale is actually a large dolphin and has not been known to attack people. IMMEDIATE OPENINGS Stouffer Foods Division of Nestle Frozen Foods in Springville is growing again. We have immediate openings for the following: CALL-IN POSITIONS: INGREDIENT HANDLER First and second shifts EQUIPMENT PREPSETUP First, second and third shifts WAREHOUSE First, second and third shifts These positions all require heavy lifting ability and candidates must have a muscle evaluation. The NEW starting wage for these positions is $7.85 per hour. PREi WEIGHER First and second shifts These positions have a NEW starting wage of $7.25 per hour. positions are eligible for a benefit package which includes retirement, jrance, holiday pay, free meals, shift differential and more. All insuran Schedule your interview today at: Provo Job Service 1550 North 200 West, Provo, Utah Equal Opportunity Employtr into consideration by adjusting the tax base in June by the average aver-age change in the tax base between be-tween June and November during the previous three years. This year's unauthorized tax rate calculation change was an attempt to use this state law as a means to fund the payment of refunds for appeals on state assessed property that are awarded award-ed after property taxes are charged in November. If state assessed or locally assessed taxpayers fail to resolve their appeals before November, they are required to pay property taxes on the original amount. They must pay the full property tax bill. Local governments collect col-lect the tax money and can spend it on their current year budgets. However, if the taxpayer wins the appeal in future months or years, the tax base is adjusted for future year's property tax rate calculations and local governments govern-ments must refund the prior year's property tax payments on the amount awarded. For this purposes the state legislature adopted a procedure which allows local governments to impose a judgment levy which will generate gener-ate the exact amount of the appeal. ap-peal. The unauthorized tax rate calculation change was meant to be an alternative to imposing this judgment levy. However, this approach has many flaws: 1. These appeals are usually unique and a three year average is not an appropriate estimate of future appeals. 2. The revenue generated by the adjustment is not restricted and required to be used to refund future appeals. It can be used to supplement the current operating budget and, 3. Is included in the base for the certified rate calculation for years to come. If this approach is taken it would only be appropriate appropri-ate to make the adjustment once. 4. Local entities which adopt this approach to pay refunds are not precluded from also using the judgment levy to pay these refunds-meaning taxpayers could be required to pay twice. All of these flaws affirm the Taxpayers Association's position, that this statute was never intended intend-ed to be used for this purpose. The unresolved problem exists when local governments must pay refunds with money that was meant for the current operating budget. This could be resolved by establishing a refund payment protocol which would allow the local government to pay the refund out of the subsequent year's budget. This would allow the entity a full budget cycle to play for the payment of the refund. re-fund. The Taxpayers Association will be studying this issue to ensure that whatever remedy is pursued by the legislature or the Tax Commission is fair to taxpayers. u First Wok Chinese Restaurant Named By Utah Holiday Magizine Best Chinese Food In All Utah THE ONLY AUTHENTIC CHINESE RESTAURANT IN TOWN Fine Mandarin & Szechuan Cuisine SEPARATE BANQUET ROOMS TO ACCOMODATE 20, 50 OR MORE LUNCHEON SPECIALS FROM $295 NEXT TO PIONEER DRIVE-IN IN SOUTH PROVO OPEN 6 DAYS A WEEK 373-72(03 1425 SO. STATE. PROVO (OLD SPRINGVILLE HIGHWAY) Q 11:30 a.m. 2:30 p.m. & 4:30 p.m. 10:00 p.m. MS I) 717 N. 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