Show Sales Tax Now Equal To Nine Mill Levy Local sales tax lax collections produced 57 percent as las much revenue evenue as the property tax In in Bountiful last year according according according accord accord- ing to a special study prepared prepared prepared pre pre- pared by Utah Foundation the private tax research organization organ organ- f e THE REPORT indicates that the local sales tax which has N become a major maior source of V revenue for m many ny Utah count counties coun- coun t ties tics and municipalities yielded yield yield- ed in revenue to Bountiful during the twelve- twelve month period ended February 28 1970 If this sum has been raised by a local property tax it would have required an increased levy of mills per 1000 assessed valuation valuation valuation val val- val val- last year Local sales tax collections for the entire state amounted to last year This included for the cities and towns imposing the tax lax and for the 26 counties levying the tax Foundation Foundation Foundation Foun Foun- dation analysts note that more than 97 percent of Utah's pop pop- currently reside in areas which arc are subject to the 4 2 of 1 percent local sales levy THE TilE LOCAL sales tax was first authorized in Utah eleven eleven elev elev- en years ago as a means of oC providing local un units ts with an added source of revenue to meet the growing demand for expanded local government services Many of the major municipalities in Utah as well as the nation have been hard pressed to with the cope myr myr- 1 iad lad of problems created by the trend toward urbanization Although the local sales tax has provided cities and counties counties coun COlln- ties in Utah with much needed needed needed need need- ed revenue re it has by hy no means solved all of their fi financial financial financial fi- fi problems nor has it eliminated increases in other taxes Despite the obvious importance importance importance tance of the sales tax in m many local budgets the Foundation report notes that the imposition imposition impo impo- of the tax lax has not been accompanied by corresponding reductions in mill levies by most local units OF THE TilE Utah cities and towns having a local sales tax lax 70 increased their property tax lax mill rates 34 3 reduced their heir rates while 41 made no change over the past ten years Of the 26 counties now receiving ing revenue from the local sales tax in Utah only three reduced their county property tax rates while 23 increased their levies levies lev lev- ies during the past decade The Foundation concludes that the 4 of 1 percent local option sales tax has proven to tobe tobe tobe be a supplement rather than thana a replacement for the thc property properly property prop prop- erty erly tax in most local budgets bud bud- gets Although the local sales tax has become increasingly important the property tax continues as the bulwark of local government finance for forthe forthe forthe the majority of oC local units in Utah AT THE present time the local sales tax while imposed by the local unit is actually collected by the State Tax Commission along with the state sales tax and allocated back to the local unit according according according accord accord- ing to the point of origin in inthe inthe inthe the sale Over the years a number of oC proposals have been made to base the distribution on population rather than where the tax is levied and collected Four different Attorneys Attorneys Attorneys At At- General however have ruled that such a change in the distribution of the local sales tax would be in violation violation violation vio vio- lation of the State Constitution |