| Show y 4B The Salt Lake Tribune Sunday December 7 rm r y -- rnjHTlinrTr "nrHnr 19H6 Continued From l tape with modernization delayed Mr Macdonald pointed out While the sales-tarevenue from the mining manufacturing and industrial category is down 7 percent this year only a small part of that would be attributable to the exemptions discussed Mr Macdonald speculated Mr Tew who also had experience as a legislative research analyst before joining the tax commission is one who believes concerns over tax exemptions will be heightened in the coming legislative session And at- 4No’ to New "There’s always concern anytime and it's alan administraas troublesome ways tive matter" he said ' While the exemptions are originally drawn to be narrow they tend to become more expansive in practice as others seek to broaden the scope legislatively or through application" tax exempThe business-orientetions of the 198(is aren't the only ones on the state law books Exemptions were allowed earlier for prescription drugs oxygen supplies for medical treatment and for personal property used in farming While not technically an exemption residential utility bills are taxed at only about a fifth of other taxed items — a reduction valued at an estimated 120 million Then there are other more narrow B-- you grant an exemption x d tempts for structural tax law changes are now put on the back burner for the most part while lawmakers await recommendations of an administration-appointetax task force d exemptions a partial list including the likes of laundry and dry cleaning services vending machine goods gold and silver coinage and prerecorded broadcast and videotapes in commercial use sales at religious and state institutions and on gasoline bought by motorists But Utah isn't alone in its spurt of sales-taexemptions particularly in the 1980s Steven D Gold director of the National Conference of State Legislatures' fiscal studies program noted that interstate tax competition to keep or attract commerce has resulted in a proliferation of exemptions for business nationwide not only for sales but income and property taxes as well There's growing recognition that sales-ta- x Today’s Weather Tha 5k Foracastfor 7pm “ EST Sun Dec Ulah Forecast 7 The forecast for I tah calls for variable cloudy skies with occasional rain or snow showers in areas The snow level will range generally from five to six thousand feet throughout the slate Highs will he in the upper ‘JOs to upper I Os with overnight lows in the mid-20- s to low dOs ifiii n I Occluded wof Service noaa u S Stationary Deu of 'tltt Commerce Suit Luke Cil) Sail Air Pollution Index I iik)' nj ii t f ii I I Imlrn VI I’riivii : :$2 I'mlmcr m ! crnul 2HT I'rovo :o f Green Kivcr t r 1 Cedar Cilv 27 HI St Moult :: 3 5H52 Soviet Utah tttons Dot OI Oiooo CO Carbon Monoxtdo TP Toial 1 I M) chance of showers Is expected today and Monday Probability of precipitation Is 20 percent Probability of rain or snow erf Salt Lake City Is 20 percent through Monday with overnight Highs will be In the mld-40- s lows In the mid-20- Wasatch Front and Western Deserts — Coche Volley The region can expect mostly cloudy skies with tew rain or snow showers tor today and Monday Highs will be in the upper 30s with lows ranging In ftie 20s Western Deserts The forecast tor the area ca'is lor continued cool temperatures ond partly cloudy skies with little chance ol rain or snow showers through Monday Highs will be In the low to mld-40- s with overnight to low 30s lows In the mld-?0- s Uinta Basin: The forecast for the area calls for mostly cloudy skies with widely scattered rain or snow showers developing mainly near the mountains know level to lower to trie volley floors Highs will be In the low to mid 40s with overnight lows in the mid to upper ?0s Southern Utoh Forecast — Southwest Volleys and Sevier Valley The tor ecus tot the region colls lot continued cool temperatures with considerable cloudiness Widely scattered torn or snow showers can be ex wwm1 1 ( the Christmas shopping season in full swing there is one tax “exemption" that state government would like to see ended — mail order sales from It's not really an exemption although the effect is the same and the State Tax Commission believes its losing at least $10 million a year because it cannot get at much of those catalog sales increasing in consumer popularity by the simple device of a telephone call and cred- taxes have been modified topsyturvy more on the basis of shortterm political advantage than adoption of a coherent long-terpolicy Mr Gold said "Erosion of taxes bases undermines the productivity of tax systems just as soil erosion reduces the yields from farmland (and ironically the odds for improving tax policy could increase if state fiscal conditions worsen" he concluded it card It’s the state’s "use" tax kind of the flip side of the sales tax which is designed to be collected on taxable items purchased outside the state but used in the state But because of a US Supreme Court ruling the state cannot require mail-ordfirms to collect the tax if they have no business facility in the state “With catalog sales increasing at 20 to 30 percent annually the stake becomes increasingly more significant” said state tax economist Douglas A Macdonald “But about all we can do is support federal legislation to enact a uniform tax But a political thicket faces those seeking to discontinue exemptions already given or to broaden the tax base to cover others not now paying the tax he pointed out In the 1980s for example many legislators and governors considered — without success — extending the sales tax to more services Utah is an example of this In 1984 then Gov Scott M Math-eso- n proposed extending the sales tax to professional services such as those billed by lawyers accountants and architects — an idea meeting such a hostile reaction that it was virtually dismissed without any discussion be allostates the to cated This year for the first time the tax commission did attempt to cols lect from individuals on a Included in basis voluntary on interstate sales that can more-or-les- the state income tax form was a request for taxpayers to calculate with a any mail order taxes owed could be liindividual the warning able to fines for avoidance About off$100000 was reported barely and administrative setting the and repreprinting costs involved 1 of the senting only about percent liability projected The Utah Foundation a private tax research firm noted m a report this year that the relatively small but numerous catalog transactions beby individuals escape taxation cause identification is all but impossible and enforcement costs would be prohibitive The foundation also pointed out that besides a state revenue loss the situation is deemed unfair comcatapetition by local business and a log stores which do have physical presence in Utah and thus are subject to the sales tax 18 New Leaders Named to Committees There will be new committee chairmen serving in all but 2 of the 20 panels formed by the Utah Legislature when it convenes session Jan 12 for a y These are designated "standing" committees which mostly hear testimony on bills and resolutions and recommend action amend or table the legislation There are 10 parallel committees in each house of the Legislature separate from the joint appropriations committees on which members also serve Legislative leaders designated Sen Paul Rogers and Rep Craig to serve as chairMoody man of the respective Senate and House of Representatives Rules Committee This committee determines committee assignment and flow of bills In latter stages of the session the rules committee often acts as a screening or "sifting” committee to determine what legislation is to be considered generally in alliance with the leadership’s goals New leadership for the Judiciary Committee is in line for each bouse with the election defeat of a couple of lawmakers who ormer-l- y led those panels — Sen Verl Asay and Rep Lloyd The new chairmen are Sen Lyle Hillyard Sel-len- and Rep Frank Johnson lt Lake City The two lawmakers repeating as chairman of the respective Energy Natural Resources and Agriculture Committee are Sen Fred Finlinson Lake City and Rep Tom Christensen All committee chairmen are Republicans because that party controls the legislative organization with 21 to 8 and 48 to 27 majorities In the Senate and House respectively Out of session the standing committees merge into Joint committees for legislative research In the Senate two legislative newcomers are assigned to chair standing committees They are Sen Richard B Tempest chairman of the Business Labor and Economic Development Committee and David H Steele Point chairman of the Social Services Committee Their House counterparts are Rep Ray D Lake City leading the Free business panel and Rep Irby N ArLake City social serrington vices There are also three former House members moving over to the Senate this term who have been designated committee chairmen They are Sen Lake City RevLorin N Pace enue and Taxation Committee Sen lt st R-S- lt R-S- Alarik Myrin Transportation and Public Safety Committee and Sen Stephen Rees Valley City Health Committee On the House side those committees are led by Rep Craig M Call revenue Rep Boyd L War-nic- k Lake City transportation and Rep Joseph M lt Moody health Two Utah County lawmakers lead the respective Education Committee in each house They are Sen CE Peterson and Rep Donald R LeBaron The State and Local Affairs Committee is led in the House by Rep Rob W Bishop City But the chairman of the Senate counterpart is still undetermined expected to fill the post of Sen Lowell S Peterson who has resigned to become a Weber County commissioner Thus a third Senate legislative newcomer could hold down a committee chairmanship Gov Norm Bangerter has a list of four candidates submitted by county GOP officials from which to choose a replacement They are Alan Hall executive director of Ballet West Glade Nielsen a contractor Steve Petersen businessman and Jack Pierce former Roy mayor Partr ulonts Damage Suit Filed in Utah Area Forecast Sunday and Monday Salt Lake City Ogden ond Provo — The forecast tor the area colls tor tew morning fog patches otherwise portly cloudy Slight "n With high-profi- (landing George Breaks Sales-Ta- x ‘IT1 State Would Like to Add Sales Tax to Mail Orders Sluggish Economy Keeps Lid on Issue State May Say f ’y y'v“ pected Probabil Ity of rain or snow at Cedar City will decreose to 40 percent bv the afternoon and to less than 20 percent bv tonight Hlghs will be In the low to mld-40- s with overnight lows In the low to mid-20- s Southeast Utah- The forecast for the area calls for periods of rain or snow showers that ore expected to decrease later In the day Considerable cloudiness continuing with scattered showers through Monday with Highs will be In the low to mld-40- s overnight lows In the upper 20s to mld-30- s Utah’s Dl x le: The forecast for the area calls for mostly cloudy skies continued cool temperatures ond a good chance of rain or snow showers Highs will be In the low to mld-50- s with overnight lows In the low to upper 30s Recreational Aroas — Lake Powell and Canyonlands: The forecast (or the orea coils tor mostly cloudy skies with widely scattered rain ond snow showers developing Snow level lowering to near valley floors by tonight Lake Powell highs will be In the upper 40s with over night lows cooling Into ttie low 30s Canyonlands highs will be In the mid 40s with overnight lows in the low to mid 30s Northern Mountains: Utah's northern mountain regions will experience scattered snow showers but with some sunshine through Monday Expected light noithwest winds ovp- - the ridges Highs will be In the low to mid-30- s with overnight lows from the teens to low 30s Southern Mountains: The forecast tor the southern mountain regions call tor periods of ram or snow that will decrease later In the day Consider able cloudiness and scattered showers are expected tor Monday Highs will be In the mid to upper 30s with overnight lows In the teens and 20s Extended Forecast for Utah Tuesday through Thursdov Northern and Southern Utoh — A northerly (low oloft will bring In much colder temperatures The extended forecast colls for few snow showers those mainly In the mountains Partly cloudy skies and continued cold temperatures are expected Highs will be In the mid-20- s and 30s north 30s and 40s In the southern part of the state Overnight lows range from 10 degrees to the mid-20- s with some colder areas Extended Forecast tor Idaho Tuesday through Thursday Northern and Southern Idaho — The extended forecast for northern ond southern Idaho calls tor fair to partly cloudy skies except for local areas ot valley tog or low clouds Conditions expected to be cold ond dry Northern highs will be in the 20s with overnight lows in the teens Southern highs will be in the upper 20s and low 30s with overnight lows ranging from near zero to the upper teens Weather Sum mars Global Temps IntrrmoiiMliiin Contractor Seeks $55 Million From US By Joan O’Brien Tribune Staff Writer In October 1985 federal prosecutors charged Denver contractor Ren-ar- d Euell with filing false and fraudulent claims with the Bureau of Reclamation In return Mr Euell last week filed suit in US District Court for Utah this time making the federal government the defendant Mr Euell seeks $55 million in damages in his lawsuit claiming the Small Business Administration and two officials with the Bureau of Reclamation violated his civil rights His lawsuit also alleges federal officials put him out of business by slandering and libeling him interfering with his contract and engaging in malicious prosecution The lawsuit names as defendants the Small Business Administration its Salt Lake administrator R Kent Moon Carlos Suarez SBA regional director Albert Pfeifle Salt Lake contract supervisor with the Bureau of Reclamation and Beverly Kar-enenegotiating officer in Salt Lake for the Bureau of Reclamation Mr Euell a black claims their alleged misconduct was racially motivated Mr Moon Mr Pfeifle and Ms Karenen listed in the complaint as Salt Lake residents could not be reached for comment Friday comAccording to the plaint Mr Euell participated in an affirmative action program designed to develop small businesses owned by "socially and n Yesterday's Conditions economically disadvantaged " water pipe in Colorado The SBA was to act as a general contractor between ITL Co and the bureau proacviding financing equipment counting and billing services according to the complaint In his suit Mr Euell claims he expected a $10 million profit from the pipeline work but delays caused by the bureau’s own negligence prevented him from completing the project on time Specifically the bureau failed to and remove power lines along the construction site and it failed to obtain rights of way or easement rights the lawsuit claims Further project design was not completed until a year after the bureau ordered ITL (?o to accelerate work and complete the project the suit says When Mr Euell attempted to bill for additional costs allegedly caused by the bureau he was criminally charged in US District Court for Utah with filing a false and fraudulent claim for $3 5 million for price adjustment according to the suit In June prosecutors moved to dismiss the charges stating "The United States does not believe that at the time of trial it can sustain its burden of proof and show defendant is guilty ” beyond a reasonable doubt In an interview with The Tribune earlier this year Mr Euell said the contract dispute followed by the prosecution drove him personally and corporately into bankruptcy "It’s destroyed my life" of Mr Euell said the alleged misrep resentations of federal official: caused him to lose his performano bond and more importantly his sta tus under the Set Aside program Their refusal to pay for woik ha forced ITL Co to defend more than 3 lawsuits from subcontractors seekinj payment Mr Euell said He said he has had to liquidate al htt company’s property to pay for lit igation including his suit seekmi more than $35 million pending in tb US Court of Claims in Washingtor DC For three years Mr Euell has writ ton letters to politicians and report ers attempting to expose what h claims is collusion corruption bigot ry and incompetence in the fedora government “It’s my contention that somebod in the federal government designe those plans and specs to be 82 percec off to break me to prove that minoi ities can't build big projects" Mi Euell said “People don't understan that we didn’t design the project w just built it" ITL Co was allowed to work onl from Oct 20 to April 1 to ensure th farmers had water but the plans t the project were 82 percent incorrex and the government knew that M Euell said Mr Euell also contends the failur to remove the power lines was delil erate The bureau not only failed t remove the lines he said "the got ernment lowered them and mad them more dangerous ’’ per- sons That Minority Small Business and Capital Ownership Development - Dailv Du la Ne This trrforroahon n recurved durfv from the National Weather Service at fN? Sait i oke IffttH national Airport Fr‘cip(tf) hon reoiJtnos and temperatur cs ae those recorded at the airport v ester dov s WeatNj Data 0 f4 Precipitation — Preopitahon hi December Accumulative deficiency Precipitation since Oct Accumulative deficiency Utah high — Utah low — S L C high — S L C low — — 0 04 — 0 1UB6 — — 57 ZO Nj 00 at Ogden 24 at Aha 45 degrees JV degrees 41 degrees Normal high tor dote — 23 degrees Normal low for this date — 57 degrees Record high for this date — QV Record low for this ?te — degrees 7 AS MOT 5wfri9e Today — 5 00 MOT Vinset Today — Utah Agriculture Forecast Continued mostly cloudy with oreas of occasional r urn if snow showers Clouets ond precipitation wi tuper oft Kreev south winds up to 20 mgh ore expected known as the Set Aside Program Program — offers minority-owne- d businesses an opportunity to participate in federal contracts While a participant in the Set Aside program Mr Euell and his company ITL Co were awarded a Bureau of Reel ainat ton contract to lav 31 miles Cir Slrikt Kill I lahn A West Valley City man was killed early Saturday morning when he was struck by a car at 1800 W North Tem- ple St Francisco Carmona 35 3182 S 1850 West suffered severe head injuries when he was hit by an eastbound car driven by Terry E Elkington 28 Grantsville at I 05 a m according to Salt Lake City police reports Mr Carmona who was dressed in black pants and a blatk jacket had left a friend’s apartment at 1900 W North Temple shortly before the a according to police reports A Jeremy Lopez's Gift of $ 184 Is Helping Homeless Fund Jeremy Lopez fished through his coat pocket for a handful of change placed it on the counter in The Tribune's library and said "Here's my allowance I want to give it to the poor " Jeremy's $184 could have gone for baseball cards or penny candv but he decided to give it the Bob Ottum Homeless Fund instead because "Dad read me the stones the poor people and I decidabjt ed they needed it more " In just one week hundreds of people young and old have contributed nearly $5000 and countless books coats and toys to The Tribune's homeless project which was instigated two years ago by late Tribune columnist Bob Ottum This year the project is being continued by Cathy Free Tribune columnist and feature writer who last Sunday profiled several of Salt Lake City s homeless people "Response so far has been in credible” said Ms Free Everybody from Boy Scouts to bankers have sent letters or called The Tribune wanting to know what they can do to help Jeremy Lopez is only one of the children who have sent their allowance in to help the homeless Another little boy sent in one dollar with a note that read I can send more next week Mom owes me $5 ' " You too can help the homeless of Salt Lake City have a happy holiday this Christmas Donations can be mailed to The Bob Ottum Homeless Fund 1’ () Box ht? Salt Lake City Ltah 811 10 |
