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Show I Inventory Tax Abolishment Urged at Meet A campaign to abolish the inventory tax in the state of Utah was presented to a group of Cellar City businessmen in a meeting sponsored by the Small Business Association, A case history of the removal re-moval of the inventory tax in the state of Arizona and the resultant increase in business activity, was detailed for those in attendance, pointing out that the increases more than offset the loss of tax revenue to the state. The centralization of Utah in the 11 western states and the advantages of a strong warehousing and industrial supply center were pointed out as the major points in favor of the repeal of the inventory tax. In addition the advantage to businessmen to better stock and supply local customers was advocated. Both of these areas showed tremendous growth in Arizona Arizo-na following the repeal of the inventory tax it was pointed out and the representative of the Arizona Small Business Association was on nana wnn facts and figures to explain his point. Retail sales during the month of November and December De-cember showed tremendous increases in-creases in these two months, his report indicated, simply because businessmen were able to maintain stocks for their customers. In Utah and other states where the inventory inven-tory tax is continued, businesses busi-nesses must reduce stocks during dur-ing these two important sales months, in order to avoid high taxation from the inventory tax at the end of the year. Arizona showed an increase in the slower sales months of January and February as well as stocks were maintained were from two to three months bringing their inventories back to the point where they were prior to November. All business is dependent upon warehousing and supplies, sup-plies, the Arizona representative representa-tive pointed out, and as a result re-sult this industry is one of the largest in the entire area. Abolition of the tax in Arizona Ari-zona resulted in a tremendous growth in this industry after a history of an exodus of ware-housing and supplying prior to repeal in 1961. The growth has resulted in increased property tax where industry has increased, increased in-creased tax for vehicles which are used in the basic warehousing ware-housing and supplying industry, indus-try, plus the increase in families, fam-ilies, in payrolls, etc., which bring about increases in sales tax and other taxes which are assessed against residents who are spending their payroll pay-roll checks in the state. These taxes more than make up for the loss of revenue to the state through the inventory inven-tory tax, it was pointed out. |