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Show UTA suggests tax drop due to in lieu payment The Utah Taxpayers Association has urged all county commissioners throughout the state to use federal payments in lieu of taxes to reduce property tax burdens rather than to fund new projects. The Association's letter to the commissioners of the state's 29 counties reads: "The United States Congress enacted this legislation based on the realization that property tax burdens are greater in areas where non-taxable federal lands are more concentrated. Payments in lieu of taxes are granted in an attempt to reduce that burden." Iron County was mailed its 1977 check of $437,494 by the Department of the Interior on Friday, September 30, 1977. In October of 1976 Congress passed the law which allows payments to counties based on the amount of federal land within their borders, adjusted by population. The law allows payments in 1977 and 1978, but Congress will probably extend the payments to other years, the Assocation reported. Commissioners in some counties have talked about using the money on new projects. However, the Taxpayers Association says in keeping with the spirit of the legislation, the payments should be used to reduce property taxes. The Association's letter reads: "We urge all county commissions to use this money to reduce property tax mill levies rather than to use it for new or previously unbudgeted projects." If used to reduce property taxes as the Taxpayers Association recommends, recom-mends, Iron County's federal payment of $437,494 would provide a mill levy reduction of approximately 7.97 mills. This would save the average homeowner about $63.79 per year, Utah Taxpayers Association analysts said. |