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Show Arguments against THE TAX ARTICLE REVISION CIVES BROADER TAXING POWER TO THE LEGISLATURE. THIS TAXING POWER SHOULD BE RESTRICTED, NOT EXPANDED. A SIMILAR REVISION WAS REJECTED BY THE VOTERS IN 1980 AND SHOULD BE DEFEATED AGAIN FOR THE SAME REASONS. Increased Property Taxes. Although it is being sold as tax relief, the amendment will result in property tax Increases of at least 25 in 1983 for small businesses commercial properties. This and other tax increase is mandated by House Bill 142 which will automatically take effect if voters approve the amendment. HB 142, which implements the Tax Article Revision, does not give tax relief to homeowners. Whether the amendment passes or not, homeowners in most counties will see significant Increases in property taxes in 1983 due to the statewide indexing program. This indexing program will also add to the 25 property tax increase on businesses. locally-assesse- Revenue sharing among local governments. The amendment would allow local governments to share their revenues with other local governments for any purpose. This violates a fundamental principle of good government that the unit of government which spends the money should impose the tax. Otherwise, the spending government would not be subject to the restraining influence of the taxpayers. Olson, Executive James A. Thompson, President McCovvn E. Hunt, Secretary-Treasure- r Utah Taxpayers Association 1809 Wilson Avenue, Salt Lake City, Utah 84108 jack d The amendment shifts tax burdens and hides the true costs of government. This Is no substitute for cutting extravagant government spending. Damage Utah's Economy. Due to the present economic crisis, the Utah economy cannot stand the massive tax increases this measure would require, especially when they are targeted at those providing the jobs. Ultimately, Utah consumers and wage earners would have to pay the price of this tax increase through higher prices and higher unemployment. This weakened economy could force increases in sales and income taxes to replace dwindling revenues. The amendment would cause property tax rates to soar and would make Utah's tax difficult and costly to administer. It leaves unanswered the question of how apartments and other rental units will be assessed as businesses or as residences. This could result in higher charges to many families which do not own their homes. control of public schools. The Constitution now prohibits the state from funding more than 75 of the total cost of the minimum school program. This prevents state government from exercising complete control over our locally elected school boards. The amendment would remove this safeguard. Lose local "Other taxes could be imposed. The amendment would allow the legislature to impose "other taxes as provided by law. The Constitution has protected taxpayers by specifically limiting the scope of taxation allowed the legislature. This new language would allow the legislature to do virtually anything it wishes with the tax structure of the state; inventing new taxes or adding new features to existing taxes. The Constitutional protections we have long enjoyed would be destroyed. A. 2 1 I I I I Vice-Preside- f ? I Rebuttal to 1 opposition to Proposition No. 1 The public should know who opposes Proposition 1! Proposition was passed nearly unanimously by the Legislature. Both major parties support it. Principal opposition comes from organizations representing large business interests. These businesses have benefited from the increased tax burden on homes. They are challenging the present tax protections for If Proposition lloses, they will benefit. Voters should realize who opposes Proposition I! Proposition 1 does grant tax relief! Proposition will allow for a direct property tax exemption on residential property. It will provide direct tax relief to against tax Increases. commercial taxes will increase with or without Proposition 1! Opponents claim Prop- com- osition 1 will increase taxes on will increase whether mercial property. These taxes passes or not. This is because these Proposition properties have received unintended benefits of laws to lower property taxes on homes. These protections may be removed because of legal challenges. If re- moved, taxes on residential and commercial property will both increase. Proposition 1 will exempt residential property taxes. commercial taxes will increase anyway. The question for voters Is whether taxes on homes should also Increase. Arguments In 1 I i t i 1 j home-owner- 1 home-owner- s Locally-assesse- locally-assesse- 1 locally-assesse- I 1 1 1 , d Locally-assesse- d Proposition 1 will not expand authority over other taxes! The Legislature is able to impose and administer all necessary taxes. Only property tax administration is limited by the Constitution. Opponents claim Prop- osition 1 will expand the Legislature's power over other taxes. This claim Is not true since the Legislature ; i 4 4 j ' 1 already has this authority! VOTE "YES ON PROPOSITION 1! Senator Karl N. Snow, Jr. Senate Majority Leader Representative 1847 North Oak Lane Provo, Utah 84601 Franklin W. Knowlton t i 4 Chairman, House Revenue and Taxation Committee Box 426, East Layton, Utah 84041 C |