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Show DESERET Sqfurday, January 4, 1969 NEWS, Utah Legislative issues 5 Sial GVMK1 The Problem Of Revenue Haw problem? Dio! ), 4 to 9 pm, Monday through Friday, or writ to Bo J2K', Salt lake Cly, Utah 84110. Have Fun The same group estimates there will be $65,235,000 avail- By M. DcMAR TEUSCHE3 Deseret News Political Editor I am a boy. I like to play with disguises so I sideburns from a Los Angeles Arm. It has been two months and I haven't received them. They post me $1.00. I saw them advertised in a magazine. 1 still want diem 11 you ean get them lor me. S.H., Downey, Idaho. t for some First shipment in November apparently went astray in the mail. So now you have been sent (and should have received by now) a duplicate shipment. Have fan. The toughest task faced by any governor and any legislature is to stretch existing revenue to cover demands of state a most important part lor a Broilmaster. Weve searched high and low but cant find It. B you can well never cease believing In miracles.-L.C- .S., raising taxes. That is the dilemma fac- Salt Lake City. Icoheli tnsuraneg $2, 328.686; tobacco products -$3,136,671; oleomargarine $360,080; and bevraqes-$2,04l,17- 1; premium public utilities - $139,640. include licenses for iiutor motor vehicle operators $822,021; hunting and fishing -$3,045,361; occupations and businesses -$1,686,104; and miscellaneous - $136,740. LICENSE TAXES I-- the and only those which will come up for appropriation allocation from by tlie Legislature sources over which the Legislature has some control. There are earmarked stale funds which can be used only such for specific purposes as highway funds. And there are a variety of programs on the state level which are funded to varying degrees through federal money. Senate President Haven J. and House Barlow, Speaker - designate Lorin N. Lake, insist that Pace, no tnx increases will be considered until the lawmakers have done their best to effect maximum economies. ' Sen. Wallace H. Gardner, Fork, a Utah County banker who will again be chairman of the powerful Joint Appropriations Committee, optimistically expresses the hope that no major tax hikes will be necessary. He figures on a strict hold the an action which line policy is not likely to stir much opposition from Rep. Frank V. Lake, who Nelson, heads the House Appropriations Committee. HISC. EXCISES Include specie! excises on ing Gov. Calvin . Ramp-to- n Mr. Teuscher These two figures do not accurately reflect the entire revenue picture for the state 1,909,702 preferably without We are hoping you can locate able for Uniform School Fund expenditures in fiscal 1969 and $69,700,000 for fiscal 1970. General Revenue government Now You Can Believe In Miracles vehicls-$9,224,58- Republican. controlled 38th Legislature, which begins hs general session a week from Monday. leaders have Republican pledged they will squeeze 2; 60-d- Miracle upcoming. Appliance Service Center, 615 S. 2nd East, is authorized repair dealer lor this brand. If they dont have part on hand, they should be able to order. Should Have Shoes By Now I sent a check on Nov. 1 lor $12.51 to a N.J. firm lor two of shoes. I haven't received them, bet the check has been cashed. Can you find out why? --VX.T., Salt Lake City. pairs They didnt give an explanation lor the delay, but as of now you should have received shipment. I was permanently Minded while serving in the Army in Viotnem. Obviously, I cannot drive a car. However, am I lor an allowance toward the purchase of one which my wile can drive? J.B., Salt Lake City. eii-gi- Yes. Even though you cannot drive, the law permits payment of an allowance up to $1,600 towm-- the purchase of a ear for an eligible veteran if someone will drive it for him. Get an application from the VA. Small Charge Plus Mileage Five and a half yeans ago we bad a S.L. carpet firm Install carpet in our duplex apartments. In our rental one, they bad to piece it and now it has come unsewn and is fraying. We have called the company three times, written them and even made a trip in to see them, but all we get Is promises. We dont ask replacement, even fliongh It has a guarantee, only repair. I have had back surgery and this has very hard on my nerves. Mrs. M.C., Orem. Something wrong someplace. They said youd never mentioned it for six years, lacking three months, until recently. They said they told you theyd do the repair work, but there would be a normal service charge. Theyve been waiting for a definite appointment with you, as soon as you indicate for you to expect indefiyoull pay. They say it is nite service after this long a time. They stand on their offer to make seam repairs for a small service charge plus mileage. Incidentally, the manager told Do-I- t Man: I might add that these problems do not make my nerves any healthier ither. He Had Too Many Commitments I sent some money and records to a person recommended to me to do some genealogical work. He did not contact me for over a year mid when I contacted him be said he was too busy to do it, so I asked the return of uy money ($50) and the records. After threatening to report Mm, I finally got $15 bat no records. Weve tried to reach him again but no Mrs. E. H. S., San Leandor, Calif. lock. Can you help? Do-I- t Man went directly to the group which recommended this person. Briefly, they contacted him and asked him to Inform you immediately on how the $5 was used and toe results attained, even if negative. They also indicated that your records would be returned. In defense of the researcher, it was determined he had made more commitments than he could handle, so two months ago he requested that his name be withdrawn from the official list of accredited researchers. Gunsmith Controls Repairs We took our sons shotgun to the store where we bought it to have a new ejector clip put on it. They said it would take two weeks, bat its been (farce times that long. Can you T.V., Bountiful. help us? The stores customer service manager will look into this and let yon know. Guns are sent to a local repair shop and are at the mercy of the gunsmith there as to speed of repairs. Hope you hear soon. Boot Money Is Waiting My son went to the ski equipment exchange held at the dry ran of a ski school and left a pair of boots. He was given a claim check. However, they were stolen and we cannot get Mrs. C.H., them or the money they were worth. Can you? Balt Lake City. The InLaxnountain Ski Association, which was in charge of the exchange will give your son the $5 or $6 he was asking for his boots. Go to their office at 3584 S. West Temple in Murray. 1 colls anO mo volumo of mod (Editors Notot Wo'ro terry im nomoor Plooso. no modKol or looof If Impossibto fo amwor ovorv ouostior. onoolopoo ot omwon con only ouostlonf. Don't send sfotnpo or Do oivon to tMo column. Only noostlons of oonorol Inforost frill oo onsworad Do-I- t Mon pbono of ffw hours and folwhoao colli cm bo occonfod only on not for nroscribtd. 61 vo your no mo. oddroto ond Mtphono number ouMlcollun but to bol Do4f Mm holy you J trgrrrinnnnnnrwyBTm'iSTinrra'rt Fun And Culture: Weekly Calendar fe Music And Dance CBS rMlo ond TV broodcoot In tto Tubornoclo. Mormon Tobomoclo Cbofr .m., Jan S; rorioortol In fho Tabornaclr, 7; 30 p.m., Jon. 0, Frio. Oary Graffman, planlil. oumI aoloisl, Sail Utah Symphony Orcltooin Ipko Tabarnacll, 1:30 p.nv, Jon. Si Waber Stall Coliopo Flno Aria Cantor, 9. Jan. Opden, I p.rr., Utah Civic F allot, Utah Symphony ond Unlvoralty "Tito of Utah Carpi do Ballot: Brigham Youno Unlvonltv. Provo, 3:30 ond 3:30 Utah Unlvonltv, Stall Logan, I p.m., Jan. t, and 3 and S p.m., Jan. ti p.m. ,j) Jan. 10. Theater "Diamond" Ploy bv lloo Pari, Jnlvoroity of Utah Piorwor Memorial Tina tor, I p.m Jan. 7 through 11; alio i p.m., Jan. 11. "Luv" Thtatar 130. 1332nd East, 0:30 P.m., Jan. 4, 10 and 11. Silver Wtnol Theater, park City, I p.m., "In Pro Honda of Hoavon" 10 and ii. Jon. Other Events H avion Volley Muilc Hall, North Salt Lake, 0:30 p.m., Jan. I through 11. BYU-S.Forum Soria Colin Jackson, Member of British Parliament p.m., Jan. . Assembly Hall, Temple Souaro, University of Utah Travel Club lecture and "1h Panola of japan" llm bv Gena Wlanrko, Kinoibury Hall, S p.m, Jan. . Star ctwmber prooram, Hansen Planetarium, "Dawn of the Universe'' V S. State st doily except Monday; admUaion free !e museum and exhibit hall. 4 k, esteem ft 3 every tax dollar as it has never before been squeezed in an effort to avoid major tax increases during the coming session. Gov. Hampton has consistently expressed determination to balance state needs against state funds without a tax hike If such a thing is possible. I OTHER If OTHER TAXES Include unemployment taxes $10,749,444; 1 iquor monopoly profits -$5,906,492; severance taxes - $2,769,813; and inheritance tax - $2,280,956. REVENUES Include 1nterest-$b,946.78- 6; unemployment trust fund earnitigs-$1,622,01- 2, nonbudgetary administration and overhead $2,261,791; capital outlay reimbursements -$1,065,955; rents and royalties - $368,621; - and miscellaneous lt $1,479,421. TOTAL TAXES $200, Neither of the states nonprofit tax study groups holds much hope for escaping some upward spiral in taxes. The Utah Foundation, fat General Expenditures its $414,013,543 November report, insists that present state programs, if continued at the same level, would result in spending exceeding income by as much as $18.5 million during the 1969-7- 6 fiscal year. In a report issued just this week, the Utah Taxpayers Association notes that state spending since 1960 has increased 110 per cent, with no indication that there will be a leveling off this year. Neither Gov. Rampton, who must propose a balanced state budget nor legislative leaders who must write the eventual budget and make appropriations completely agree with the pessimistic forecasts of the taxpayer groups. lt There is very likely to be one tax Mke no matter what happens. Includes correction - $3,997,526; 1 972,957; ,404; interest on debt - $1,961,338; aeronautics -$1,066,730; libraries - $1,014,727; protective inspection and regulation - $1,257,899; liquor profits to local governments-$- l ,000,000; general public buildings-$639,45liquor administration! ,613,197; other special administration $465,061; and all other $2,784,482. AIL OTHER general But nearly everyone agrees 38th Legislature will have some staggering prob-- . lems making fiscal ends meet in their coming session. XOK: Includes revenue and expenditure univereitiee. lf income source, The last increase in sales tax came in 1963, when law- lien over their last budget. Proposed increases in state financial support for public schools range from $20 to $50 million. There are major demands new state construction for One approach which has been mentioned and has been very warily regarded both by Republican legislative leaders and Democratic Gov. Utah ' college and mum iy nut roumm i ranging upwards of $40 million and more. Health and Welfare programs want more funds. So do virtually every other department None want to either take an appropriaton cut or stay at present levels. Bear in mind that the state may well have to find new which usurevenue sources alally means a tax hike most as soon as existing programs we granted minimal increases needed to maintain current programs in a despite very growing state real growths in toe state economy. Rampton suggests a boost to a total sales tax bite of five per cent a 14 per cent increase. SPLIT WITH STATE The one per cent would go to the state and the rest would go to local government. This increase would place Utah among the very' few states Then me has some idea of toe complexity of toe tax facing toe governor, state officials, and toe 97 men and women who make up toe 38to Legislature. The November Utah Foundation report contends that general state revenue, from all sources, in toe fiscal year ending June 30, 1968, totaled $401,909,702. Total state spending for ail programs in that same period of time reached $414,013,543, the Foundation study indicated. It does not take a mathematics major to see that For one thing, both of these substantially raised in 1965, when Democrats controlled both booses of the Legislature. Also, these are areas in which Republican legislators have shown a traditional reluctance to tax. In general, GOP lawmakers tend to look to the sales tax if when increases are needed, while Democrats examine income private and corporate and mine occupation taxes. State taxes have already been raised recently on tobacco and liquor. This leaves only property tax as an area for increase and here lawmakers of both parties are loathe to look. Also, it is in toe area of property tax that Gov. Rampton has most forecefuily pledged his intent to hold toe line. taxes worn these figures portend trouble for a state. Gov. Rampton does not hold with estimates which have his administration ending the 1967-6- 9 biennium with a deficit. But he does not quarrel with the hard fact that toe state does face a fiscal problem of major proportions. Preliminary general fund revenue estimates for toe next two fiscal years, prepared by toe Legislatures Budget-AudCommittee, forecast 1969 revenues of $91,314,-60The preliminary estimate for fiscal 1970 is $96,390,300. it 0. - having a combined state-loctsx of o.er four per cent. The current edition of the Book of toe States indicates that all 50 states use sales tax as a revenue source, with most using it on both toe state and local levels. State levies vary from two to five per cent and local rates range from one-haper cent to three per cent. lf 20 o STATE AVERAGE 11.34 7 W K 0 0 SOURCE Utahs sales tax revenue goes into toe general fund in fact, is by far the principal revenue source of that fund. PRINCIPAL H s 2 3 - 1 cc Io I2 2S 3 Kj in I Unimproved Real Estate Assessment d I restricted gran te for research and ether purpose at Calvin L makers raised the state levy Because it is a broad-baseper cent to its by one-hathree cent rate. tax capable of raising large per present The local option tax was ausums of money from a relathorized in 1959. tively small overall increase, Most residents of Utah pay sales tax money has provided both the state and local levies, sufficient general fund revesince most cities, towns and nue to permit transfers from counties have adopted the this fund into the uniform local option tax. Especially is school fund in order to keep state-wid- e this true in the majoi Waproperty tax levies satch Front communities in at a reasonable low rate. Salt Lake, Weber, Davis and Municipal and county govwhich of both Utah counties. ernment, It is from these counties depend heavily on property that the major push is coming tax as their major source of for another local option in- income, have benefltted greatcrease in 1969. ly from the local option sales The thorny question facing tax the lawmakers, if a tax inBut, with the state having to crease is actually deemed a take a hard look at its own local officials necessity, is whether they pockctbook, should approve a hike in both may have a hard time selling the state and local sales legislators on the Idea of levies, or establish a priority boosting taxes to help city and for a boost in only one area. county government lf from Fiscal Year Ended June 30,1968 Sales Tax If there is to be a major tax hike arising from Utahs 1969 legislative session, it might well come in the sales tax. This area of income production, based on the state levy of three percent on sales, will bring an estimated $64.5 mil-lio-a into state coffers during fiscal 1969. Another estimated $10.5 million wiH go to cities and counties from the one-ha- lf per cent local option sales tax. Municipal and county officials are readying a request to the 38th Legislature seekper ing an additional one-hacent increase in the local option tax to meet burgeoning costs of local government. THERES A GAP Legislators and state officials, uneasily eyeing the gap between demands on the state treasury and the estimated revenue, may not be anxious to give local government another slice of such a lucrative po1ice-$3,76- 6, Utah State Government Finances Hike Looms In control-$- 6; that the Virtually every state agency is seeking more money for operations during he 1969 and 1970 fiscal years. Education, which takes more of the Utah tax dollar than any other area of government, is seeking the biggest increases. Higher education is seeking an increase of some $19 mil- - Almost everyone believes there will be a one-ceper gallon hike In the state tax on motor fuel. This increase will go to maintain the states network of Interstate, primary and secondary highways and streets. It would be only with greatest reluctance that lawmakers would make increases in either the individual income or income taxes, corporation both of which feed the Uniform School Fund. Deseret News Staff Writer A bill to empower counties to assess farm lands at their value for farm purposes only now is being drafted. This will implement the constitutional amendment approved by a substantial majority of voters Nov. 5. Terms of the bill have been agreed upon by members of toe Utah Agricultural Land Owners Association at a conference with the State Tax Commission and staff. It has been agreed that the bill will: Fix a minimum size of five acres of lands used for agricultural purposes for a minimum of live years with a grass t 3 3 S production of at least $500 a year to qualify for toe lower valuation. This valuation will be based upon productive capacity, not toe actual production realized from the land. An advisory committee on farm land valuations shall consist of representatives of Utah State University, toe land owners association and the Tax Commission. No more than five classifications of agricultural lands will be used. If farm lands are sold for other purposes, taxes must be paid for three past years on a basis of the sales price. According to present law, farm lands and all other lands must be valued according to cash value. Farm lands, however, have been valued traditionally at a low rate. --J 2 3 Acres (1967) Levels-Ov- er f Green Belt Terms By CLARENCE S. BARKER ar U iill State Tax Commission figures for 1967 indicate that rural land parcels of more than three acres in size were valued at 11.35 per cent of cash value. This compares with residential property valued at an average of 17.83 per cent of its cash value, and commercial property valued at 19.33 per cent of its cash value. Implementing of toe Green Beit amendment, therefore, may be in some cases legalizing traditional undervaluation of farm lands. The Utah Agricultural Land Owners Association which pushed through the Green Belt amendment consists of leaders of the Farm Bureau Federation, Farmers Union, Cattlemens Association and Wool Growers. f I MRB |