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Show DECEMBER 16, 1986 Part 8: The Tax Act and You ried filing jointly and $112,500 for single taxpayers. The Act has also added more preference items in arriving at alternate minimum taxable income: 1. Accelerated depreciation on real property (i.e., rentals) as over compared to depreciation computed on a straight line basis 40 years; 2. Accelerated depreciation on personal property as compared to depreciation computed on a 150 percent declining balance; interest on non government bonds issued after 3. By JOHNNY E. WILLIS, CAP The following is a continuation of articles written to inform the reader of changes made by the new tax act of 1986. INDIVIDUALS Boost to Baby Boomers stood at the podium, addressing the annual gathering of the Baby Boomers Association. For the first time in we were smiling. many years, Ladies and gentlemen." I said. I urge you to turn on your car radios and listen to the music. We Baby Boomers are back in style!" The crowd roared their approval and a hundred Diet Cokes shook with the thunderous applause. "We old geezers are back in the saddle again, I said. "We can no longer be taken for granted!" There was more applause, followed by shrill whistles and The members of the association, all age were basking in their aged glory. "These have been trying times for Baby Boomers. We have been called Yuppies--anyet most of us have never met a Yuppie. We have been branded as the BMW Generation-a- nd yet most of us are still making payments on three-yea- r old Chevettes. We have raised children-a- nd yet the kids have flooded our schools, creating higher taxes and a huge budget mess. We have been told to drink Perrier Water--an- d yet most of us find the stuff expensive and sickening. We are the generation that opposed war and yet we have a president who gets his jollies from attacking Grenada and poking around in South America. I Over-the-Hi- ll g. 35-4- d "We have been the most misunderstood generation in Amer- most misunderstood was our music. We created rock n roll. We chased Doris Day and Vic Damone off the music charts. We created the earthy growls of Elvis, the sly sneers of Ricky Nelson, the plaintive ballads of the Beatles, the sensual swagger of the Rolling Stones. And yet in the last 15 years, we have let the idiots take over our own music. Rock music has been dominated by punkers who inserted safety pins in their ear lobes, jerks who bit off chicken heads on stage, mutes whose only claim to fame was the length of their hair and the color of their mascara. "But now, my friends, we are back with a vengeance. One of the top tours of last summer was Bob Dylan, now in his 40's...The top song in the country last week was by r Boston's Tom Scholz, now pushing 40.. .The top old Neil Diamond-...Th- e among all performers this year is top soul performer of 1986 was Tina Turner, now 48. ..The Monkees, with a combined age of 124, have seven albums on the Billboard charts. ..Paul Simon, now 45, has a Top g album in the country is by Bruce Ten Album... The Springsteen, age 37... Grace Slick, age 47, had a number one song this year in "Sara... Teenagers are turning out for concerts by such old duffers as Phil Collins (35), Peter Gabriel (36), Lionel Ritchie (37), John Fogerty (41), Steve Winwood (38), Robert Palmer (38). ..In fact, over half of the 26 songs to top the Hot 100 this year are by acts over the age of 35. My friends, if Paul Simon and the Monkees are back. ..Can Freddie Cannon and Hermans Hermits be far behind? The audience was in ecstacy, chanting a chorus of old age, old age, old age. But dont just believe me, I shouted. Here with me today is Jim Lewis, the manager of Pegasus Records in Bountiful. Hell tell you that new movie soundtracks are creating a renewed interest and big sales of such Baby Boomer classics as Youve Lost That Lovin Feeling by the Righteous Brothers, "Stand By Me by Ben E. King and "Twist and Shout by the Beatles. Hell let you know that we Baby Boomers are once again Number One! I disappeared behind the curtain. Lewis took the stage-a- nd It was getting awfully late, and It was time for my teaspoon of Geritol. ican history-a- nd money-grossin- g money-earne- 43-ye- ar best-sellin- City ordinances updated LAYTON Last Thursday evening, the Layton City Council made minor changes in three city ordinances, in order to bring them up to date with state law and with practical law practices. The first ordinance to be amended dealt with the state law regulating open containers of alcohol in a vehicle. According to Assistant City Attorney Steve Gar-sidthe state law is defective because of the way the open container is defined. It is impossible to get a conviction under the present state law. The amendment to Laytons ordinance better defines alcoholic beverage so that pro e, secution for violation can take place. A second ordinance that was amended changes the amount that a city can use for prosecution for bad checks. The old law set the limit at SI 00. The new amendment raises this amount to S200 for Class B. Misdemeanors. Finally, the Attorneys office requested a change in an archaic law that required businesses to purchase and' maintain a small metal license plate in addition to their regular required license. The Council voted to amend this ordi- nance and eliminate the small plate. Casualty loss: Individuals who suffer a loss due to fire, water, wind, theft, etc. are able to claim an itemized deduction for the amount of the loss (with certain limitations). Starting in 1987, to be able to claim the loss, an insurance claim must be filed on a timely basis to claim any unreimbursed insurance amounts related to the loss. Losses related to Financial Institutions: Taxpayers who have or may suffer a loss because of a deposit held in a financial institution that went insolvent may be able to claim that loss as an itemized deduction under casualty losses. For prior years, this loss would have been treated as a bad debt and claimed as a capital loss with a maximum amount claimed of $3,000 per year until the entire amount is reported. Because this law becomes effective for taxable years beginning in 1983, an individual can elect to amend their tax returns to claim amounts higher than the $3,000 annual limitation and receive additional refunds on prior years. Because of the rate of failure recently experienced among financial institutions, this law was enacted to assist taxpayers to currently deduct their losses and offset current taxable income. Alternate Minimun Tax: Individuals are subject to an alternate minimum tax when their regular tax is lower. The tax is computed on an alternate taxable income at a flat rate. The tax act changes a few items in the arriving at an alternate minimum tax. The tax rate has changed to 21 percent from 20 percent. The exemption is reduced by 25 percent of which the alternate minimum taxable income exceeds $150,000 for mar CONTINUED FROM FRONT PAGE Layton can be completed. City Attorney Mark Arnold told the Mayor his idea was sound but his action could not be immediate. A legal, basis for the moratorium must first be established, and developers must be given sufficient notice that the moratorium is coming. The Council, supporting Mayor McKenzie, requested that the city staff start gathering information about the apartment situation in Layton so that a determination can be made about the impact these units have on the then decide if can The Council city. a moratorium is needed. multiple-dwellin- g By DONETA GATHERUM LAYTON The Layton City Council will hold three public hearings for rezone requests as part of its next regular council meeting scheduled for January 15, 1987. At 7:15 p.m., the council will consider a request made by Ivory Company to rezone the property immediately east of the Fox Creek apartments on Hill Field Road from to Originally Fox Creek was to have been a two phase apartment house complex. With the amount of apartment house construction that has taken place in Layton during the past two years and the number of apartments currently being constructed. Ivory Company would now like to hive a zoning change for the property they still own that borders Fox Creek. R-- R-l-- 4. If the zoning change is granted, Ivory Company plans to build single family' homes on 6,000 squar foot lots. The project would be similar to the homes in the Colonies of East Pointe. When the council met to schedule the public hearing, Golden Sill attended to inquire about the future Haraldn side of the proposed Ivory de- velopment. Mr. Sill was interested in keeping the road open and extending it from Gordon Avenue to Antelope Drive. Historically the road had gone this distance but in recent years the north end has been closed off. Community Development Director Scott Carter said the city planned to keep the road and make it an access between Gordon and Antelope. Mr. Sill and his son, Kim Sill, told the council they felt Ivory should be required to build and maintain substantial fences as they developed their housing project so farm animals would be kept in their proper places. The second public hearing scheduled for January 15 will start at 7:30 p.m. The council will listen to a request from the Corbridge family to have 40 acres of property at 600 North 3200 West annexed to Layton City. They want to develop a subdivision. The planning commission and Davis County both expressed con- - Editor 544 9133 1 s: By TOM BUSSELBERG school district administration building auditorium here. The hearing was set after the Davis County Board of Health opted to support the implementation of food service fees. The issue will go to the county commission for action after the public hearing. Based on a schedule that will become effective in Salt Lake County after January 1 , fees would support inspection and health and safety Businesses affected would include restaurants, bakeries, grocery stores and meat processing plants, along with many others. Fees wpuld range from $ 5 a day for a temporary food service vendor, such as are set up at fairs, to $100 for a restaurant with more than 75 seats. 1 partment should be obligated to but provide through health officials have claimed it would be charged against those receiving the service and not the general public. Fees would be based on square footage, number of seats and ser- vice bays or food dispensing areas. Day care centers and nurs- A similar fee schedule is being n health studied by department and Utah County along with a health district in Southern Utah. Weber-Morga- Its projected $30,000 would be raised from of next er year, health Director Enrico Leopardi said. Food service fees werent the only ones discussed in last weeks board meeting, with increases okayed in several areas. The nursing division had several changes in their schedule, as well. Those being raised with current fee listed first and the new in brackets are: Well Child Clinic visits, $3 ($5); typhoid and cholera immunizations, $2.50 ($5). Many other fees were kept the same, though, including Davis County is following the lead of Salt Lake County in this at board of health request. A similar proposal several years ago was defeated in court action with litigation expected again. The Utah Restaurant Association spearheaded opposition last time and is poised for action again. As in the previous case, URA officials contend the fee would be levied for a service the health de is far from the Layton City boundaries and it would be difficult to provide utility services. The county was concerned about leaving an unincorporated island between the subdivision and Layton Citys present border. Mr. Carter noted there is a possibility that the Corbridge family might want to annex their property to Syracuse City if Layton City doesnt want it at this time. The final public hearing on Jan. 15 will start at 7:45 p.m. This is a housekeeping request, made by the city, to have the zoning Reflex-Journ- tax-dolla- rs FARMINGTON Restaurant owners and others interested in providing input on proposed permit fees can have their say in a Jan. 15 public hearing at 7 p.m. in the cern about this annexation. It around the Layton City Hall, Commons Park and Layton High School put under one uniform zone. The property to be rezoned is rather It includes property from the Layton Commercial Plaza on Gentile Street to the Morgan Mill on Gentile and north along Fort Lane to the city fire station. The city planning department is asking that property in this area that is now in a CP-- zone be zone. The changed to a zone allows more control by the city on the type of developments that can be constructed. 3 C-- X C-- pre- school physicals at $7; Head Start physicals, $5; DPT, TD, polio and measles, mumps rubella at $6. al Editor Sometimes we have to clean off our desks and answer our mail. So here are a few tidbits from the mailbag: You may recall that three weeks ago I wrote a column praising Barnes Bank of Kaysville for its showing in recent national studies of fiscal soundness. Barnes was cited by two industry magazines for its good business practices. That drew a reaction from two other local banks; both pointed out my story containd an error. I reported that 450 banks and , savings and loans had failed nationwide this year, a figure I heard reported on a local radio station. But Harold Steed, president of Community First Bank of Clearfield, wrote to point out that the correct figure is 125, and, of course, an unknown larger number may be struggling, but certainly not more than ten times the number of failures, his letter read. He praised the column for being positive, and included with his letter a copy of a report from a national bank rating firm which gave Community First Bank an A" rating, its highest mark. So, I offer my congratulations to Community First Bank as well for its sound practices. I also heard from Mark Altom, an officer with the Kaysville branch of First Security Bank. He said my column was read "with much Interest" by those at First Security, but again pointed out that only 125 banks had failed this year. 1 think we all know that First Security is a strong financial institution as well. Besides, my works for them, as do many friends. Anyway, equal time for equal security so congratulations to all our local banks for doing a good job. And thanks for taking the time to let us know you like what we re writing about. And speaking of businesses taking in millions of dollars, were just about out of shopping days for Christmas. Shoppers are busy running around, fighting for crowded parking spaces near stores, etc. With all the traffic and confusion involved in this rush, do you ever wonder if theres a better form of transportation for Christmas than an automobile? Apparently there is. or so says "Ranger Rick" magazine. The answer is one that Santa himself knows about - reindeer. The magazine says that although reindeer are small, they have great strength and endurance (probably more than the average shopper). A healthy reindeer usually weighs about and can pull its own weight in cargo on sleds across the pounds tundra! or the root tops! Thats better than can sav for my old Pinto wagon. Besides, Santa's reindeer only work one dav a tear anyway, so theyre in great shape. Finally, congratulations to a former Duvis High School graduate who is making it big with the Utah Jazz. Doug Wood, son of rheron and Avice Wood of Kaysville. is part of the Juz Bund sponsored by Continental Bank (more equal lime for banks)! Doug plays at each Jazz home game, and participates in halffimc activities. Besides playing for the Jazz, he woiks lot the Salt Lake Valley Visitors and Convention Bureau, helping xisitors to our state feel at home. Well have more on the band in a future issue. Doug piesentK l,h Sal1 ,1'kc W,KIC 1,0 c,livs classical music and I hoc be ( ales movies. Congintulutions to him lot his musical accomplishments. Have a great week, and get that last minute shopping done! sister-in-la- w -- The toddler car seat deposit was raised from $10 to $15 but is rescinded when the seat is returned in good condition. The rental fee was doubled from $5 to $10 for a year, as well. Environmental health also X By TOM HARALDSEN 51-7- Weekly newspaper published at Layton, Utah every Tuesday, In the Interest of Davis County and colonies formed by former residents. Address all correspondence to 197 North Mala Laytoa Utah 84041. Subscription rate: 25c per copy, $6.50 per year, mailed In county, $7.50 per year outside. John Stahl, Jr. Owner Publisher Luclll S. Stahl Vice President J. Howard Stahl Manager Tom plans for the old Doman Road, a dirt road that is located on the east Hearing to air restaurant fees 11-5- Published weekly by Clipper Publishing Co. Inc. 96 South Main, Bountiful, Utah 64010 W-4- Layton Council sets rezone hearings ing homes would pay $40 as would small restaurants with up to 10 seats. A facility with two service 0 seats would be bays or charged $60 while one with three service bays or 6 seats would pay $80. Reflex-Journ- al pt long-ter- non-busine- ss regulation enforcement costs. Apartment moratorium Tax-exem- August 7, 1986; con4. Use of the completed contract method for struction projects; 5. Use of the installment method by individuals subject to the new proportionate disallowance of the installment method for regular tax purposes; 6. Net losses from passive activities as computed under the new tax rules; 7. The untaxed appreciation on charitable contributions used as an itemized deduction; 8. Net operating losses will not be allowed to offset more than 90 percent of the alternate minimum taxable income. Estimated Taxes: The Act will increase to 90 percent, up from 80 percent, the amount of estimated tax payments required to be underpaid during a tax year. Taxpayers may continue to avoid 100 of the to percent pay estimated penalties by continuing tax Effective for current the taxes year. during previous years 1986. years beginning after December 31, W-Taxpayers must file a new 4 by January , 1988 or the employer will have to withhold as though the employee had W-is the form used to only one allowance (two if married). The 4 establish married or single payroll status and how many allowances an employee claims. is proposing some fee increases although most arc remaining unpool permit changed. A year-roun- d would go from $100 to $150; seafrom $40 to $50 and sonal pool-sp- a the food handlers permit from $3 for two years to $5 for three years. Emergency response and cleanup rendered to commercial businesses would see a fee imposed depending on co.sls incurred and time spent. Currently, no fee is being charged. 150-21- 0 1 rSin 1 t |