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Show For Against O Q E Shall Article XIII, Section 14, of the State Constitution be amended to allow the Legislature to exempt motor vehicles, aircraft, and watercraft from the property .tax and provide, instead of the property tax, a uniform state fee for vehicles used on public highways, lands or waterways. Proposition No. k Official Ballot Title; 1 TANGIBLE PERSONAL PROPERTY TAX EXEMPTION Vote ct by Ihe members of the 1984 Legislature on final passage: HOUSE (7G rnenben): Yets, 06; Nays, 2; Absent or not voting, 7. SENATE (29 numbed): Yens, 23; Nays, 0; Absent or not voting, 6. cr ii rt Aj l' i J S.' ' ,' V' - 'riK IMPARTIAL ANALYSIS Proposal The current revenue and taxation article of the Utah Constitution requires that all property, unleu exempted, be taxed at a uniform and equal rate. The property taxes on automobiles,' boats, and aircraft are determined and collected at the county level. Even though the constitution requires a uniform ' and equal rate of assessment, the same car could have different tax bills in different counties. This is becsuse of different tax rates (mill levy rates) for each county. The formula for the property tax is: Assessed Value X Hill Levy Bate Amount of Tax The proposed amendment would allow the legislature to exempt from the property tax all types of vehicles, watercraft, and aircraft that must be registered to be used on public highways, waterways or lands. Instesd of a tax on these vehicles and craft, the legislature would establish uniform statewide fees or levies. The rate would be the same wherever the property is registered in the state. As with the current property tax, the revenue from the fee would be distributed back to the local taxing districts. Effective Date if approved by the voters, would be effective December SI, 1884. However, the amendment only beginning authorises the legislature to change the current taxes to uniform fees for vehicles, watercraft snd aircraft. Until those chsnges are made by the legislature, no change in the current law would occur. The amendment, Fiscal Effect There has- - been no enabling legislation passed by the legislature at this time that would change the property tax on vehicles and craft to a uniform fee. Therefore, if passed, this amendment would have no fiscal impact for the next tax year. Future legislation would be required to implement the changes authorised by this amendment |