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Show UNIVERSAL lilCROmUING SALT LAKE CITY, UTAH CORP. FRIDAY, FEBRUARY 28, 1969 Salt Lake City Tax Burden Is Described as Moderate Despite the fact that Utah has one of the highest individual income taxes in the West, the overall direct tax burden for a typical family in Salt. Lake City is moderate when compared with other major cities in the Mount-tai- n States. This fact was pointed out in an analysis just completed by the Utah Foundation, the private tax research organization. According to the survey a family of four persons owning a home valued at $25,000 and earning $10,000 per year would equal to the average of the 12 western cities in the survey. The governor submitted a budget to the 1969 Utah Legislature which included recommendation for raising the sales tax rate by 1 per cent and increasing the required local mill levy for the schools by 2 mills ($2 per $100C assessed valuation)., If this were done it would increase the tax load for the typical $10,000 a year family by about $56 per year ($48 in sales tax and $8 ir property taxes). This would stiP place Salt Lake Citys overal tax burden revised total cf $844 slightly below that of Phoenix Tucson and Denver. The total taxload, however would be more than any of the Pacific Ccas' cities included in the study with the exception of Portland. Utah Foundation emphasized that the above comparisons were based entirely on the three major taxes, (property, sales anc" income) paid by individuals and families. Specifically excluded were taxes paid by business and industry as well as all special excise taxes. More than 50 per cent of the property tax, for example, is borne by owners cf commercial and industrial prop-tin Utah. The Foundation report notes that Utah relies more on taxes from business and industry than most states. A 1967 Census of government report shows that the proportion of the total tax base consisting of commercial and industrial property in Utah is more than greater than the average cf 30 states reporting to a special 1967 Census of government survey. Only four of the 30 states included in the survey reported a higher proportion of commercial and industrial property in their tax base than is found in Utah. pay approximately $788 in property, sales and income taxes in Salt 'Lake City. This is less than the probable tax burden for a family in Phoenix (033), Tucson ($903), and Denver ($864), but is somewhat above the over ?hll tax load in Albuquerque at $667. Among the Pacific Coast cities included in the .study, Portland ($876) and Sacramento ($797), would have higher overall tax loads than Salt Lake City. On the other hand, lower tax totals for this typical family would be registered in San Diego ($751), Los Angeles ($718), Oakland ($659) and Spokane ($613), and Seattle ($463). Foundation analysts point out that Utah imposes a higher individual income tax than any other state in the west with the exception of Oregon. Oregon, however, does not levy a sales tax: With respect to the other two major taxes affecting individuals (property taxes and sales tax), the study notes that Salt Lakes position may be termed moderate. The property tax load in Salt Lake City is somewhat below that in most of the other major cities of thee west, while the. sales tax burden is about y one-thir- d Series Explains New Ways To Save Money on Taxes tion of CPAs. (This is the second of a series of articles prepared by the Utah Association of CPAs on money saving tips in the preparation of the 1040 Federal Income Tax Return). Are you claiming a charitable deduction on your Federal income tax return for that portrait of "Uncle Leo, the General," which you donated to the society in 1968? Then you should know that the Internal Revenue Service has tightened up its procedures for establishing the far market value of art objects for which such deductions are claimed, according to Herbert J. Zimmerman, president of the Utah Associa State-historica- . pens were used by Gov. Calvin L. Hampton, seated, to sign into law SB 8 phasing our Inventory Tax. Participants: S. C. Johnson, Sen. Warren E. Pugh, Richard L. Warner, Vern Brazell, I. J. Wagner and Sen. Omar B. Bunnell. Twenty-fou- r l The IRS now requires a description of the donated work of art, how it was acquired, cost, proof of authenticity, and signed appraisal, if any, in all cases cf donations worth more than $200. In general, you can fteduct up to 20 per cent (30 per cent in many instances) of your adjusted gross income for contributions to qualified charities. Be prepared, however, to verify such contributions in the event you are called in for an audit of your return. In addition to the experts appraisal mentioned above cancelled checks, money order stubs, receipts, etc., will do. (Continued on page 8) ment and fixtures tax. Mr. Johnson said his committee will work with various, taxing units in the state to encourage complete and accurate audit Governor Ramptori's Signature Starts Inventory Tax Fadeout Governor Rampton has signed into law SB 8, a bill phasing out inventory tax and opening the way to a new business and industrial growth. The overwhelming voter support last November laid the ground work for the bill that passed the Senate by a vote of 22 to 1 and the House by 57 to 7. On hand for the signing were members of Help Utah Grow Committee that has been instrumental in informing the public and legislators of the need for this bill. Governor Rampton, commenting on the bill said, "This is an orderly phaseout in keeping with the aims of business and industry and protecting the need for replacement revenue. The bill drops the amount' of the assessment against inventories for each year in 1970, '71 and 72. Presently businesses holding inventories are paying tax on 26 per cent of the fair cash value. Under the provision of the new bill that assessment drops to 20 per cent in 1970, 14 per cent in 1971 and 8 per cent in 1972. At the end of 1972 there wil be no tax on bonafide inventories. Various estimates as to the loss in revenue of Inventory Taxes to the state range from $4 to $5 million. Replacement revenue has been a major factor in deter mining the phaseout. S. C. Johnson, Help Utah Grew chairman, said, "This phasecut will equalize the business tax. We support the State Tax Commissions efforts to audit equipment means of administering a fair business tax." Preliminary audits conducted by the State Tax Commission show that the money to replace Inventory Tax as available from proper enforcement of the equ:p- - programs. "The repeal of the Inventory Tax and the audit program will both act as a stimulus to business growth. All firms now in Utah want a fair tax program that means all pay their fair share. Business looking to come into Utah finds us much more attractive without the Inventory Tax and they to, want a location where everyone is called upon to pay a fair tax share," he said. TODAYS EDITORIAL Transistor Age Arrives In there were 3,817,000 babies born in the United States. Bom that same year was an invention 1947 which has also come of age the transistor. The transistor, invented and developed at Bell Telephone Laboratories, has and will have definite effects on all society and specifically those persons bom the same year. Bruce Knight, district manager for. the Mountain States Telephone, said it is estimated that seven out of (Continued on page 4) t |