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Show Lower Taxes ? Various tax and expenditure limitation proposals now being considered in Utah could trim state and local taxes by as much as $192 million a year. This was the conclusion of Utah Foundation, Founda-tion, the private tax research organization. The Foundation study analyzed the three major tax limitation proposals now under consideration considera-tion in Utah. It pointed out that these proposals probably will be brought before the 1979 Utah Legislature for consideration. Some of the plans might even be submitted to the voters in 1980 for decision. One proposal patterned after the successful "Proposition 13" initiative in California would limit property taxes in Utah to 1 of an artificially defined market value. This plan would reduce Utah property taxes by approximately approxi-mately $64 million. Because the proposed initiative would understate under-state true market value by 36, the 1 limit actually would equate equ-ate to 0.64 of actual market value on the average. Among individual counties, the limit could be as low as 0.28 in Sanpete County and as high as 0.95 in Juab County. According to the Foundation, some legal authorities have raised questions regarding the constitutionality constitu-tionality of Utah's "proposition 13's plan. Thus, even if the initiative is eventually approved either by legislative or voter action, it could be later overturned overturn-ed by a court decision. Since the California "Proposition 13" initiative initi-ative amended the constitution of that state, the constitutional questions there are less obvious dian they are in Utah. The Utah State Constitution, however, cannot can-not be amended by voter initiative. initi-ative. Foundation analysts , indicate that i he "proposition 13" plan for Utah would tend to perpetuate existing property tax inequities and create some new ones. A two-tier system of property taxation taxa-tion would be established where property which had not changed ownership recently would be assessed as-sessed and taxed at a lower rate than properties which recently changed hands. j Another proposal by a group called the Utah Tax Limitation Committee seeks to limit taxes and spending in Utah through a constitutional amendment. Under this plan, increases in appropriations appropri-ations and in property taxes would be limited to changes in per capita income and population. If the Tax Limitation Committee Commi-ttee proposal had gone into effect ten years ago (1965), state and local revenue (excluding Federal aid) in Utah during 1975-76 would have been $192 million, or 20, below the amount actually realized reali-zed for that year. Over the 1966-1976 1966-1976 decade, the cumulative reductions re-ductions resulting from the proposal pro-posal would have toraled $812 million. The plan also would have limited property tax increases, especially during the past three or four years. To meet the growing demand for tax reduction, the Governor submitted his own tax limitation j plan. It contained the following elements: j 1 . An overall property tax limit of 1 based on true market value. 2. Reductions in 1978-79 spending spend-ing levels amounting to $15 million. mil-lion. 3. Maintaining state support of Utah's public school program at 75 of the overall cost. 4. Extending the property tax "circuit breaker" program to all families in Utah with incomes below $20,000. 1 The Foundation Study points out that while the Governor's program pro-gram would make some sweeping changes in Utah state and local finances, it would be the most moderate of the various limitation plans suggested. It would introduce intro-duce an income redistribution element in the property tax for households with income levels below $20,000 per year. Some individuals and many local units, however, would not even be affected af-fected by the plan. The program would necessitate state expenditure expendi-ture savings of $15 million to finance the expanded "circuit breaker" program plus an added $20-25 million to finance the full 75 of public school costs. |