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Show Committee Launches Campaign For Utah Inventory Tax Repeal are also supporting the move. In explaining the inventory tax, Mr. Brazell called it "a punitive tax on the goods held for resale within Utah." He said it is charged at 26 per cent of the market value of merchandise (inventory) in stock multiplied by the local mill levy on Jan. 1 of each year. It means a penalty tax (on the average) of $26 for each $1,000 worth of inventory. This tax represented only 2 to 3V2 per cent of the state's tax income, or about $3V2 million. mill-ion. This tax money will be replaced re-placed in three ways, Mr. Brazell noted. 1. The last State Legilature directed the State Tax Commission Com-mission to vigorously enforce the existing taxes on all business busi-ness property. This is already underway and is providing increased in-creased revenue to offset income in-come lost from hte Inventory Tax repeal. 2. Additional tax income from natural growth in business. busi-ness. 3. Additional tax income from increased business encouraged en-couraged to locate in Utah by repeal of the inventory tax. This is a vital extension of Freeport. A state-wide campaign to repeal re-peal Utah's inventory tax was announced this week by S. C. (Chris) Johnson , chairman of the Help Utah Grow Committee Commit-tee which is boosting the effort "To meet the programs of other competitive states we must phase out our inventory tax" Mr. Johnson said in announcing an-nouncing the campaign plans. "Surrounding states have no enforced inventory tax and this makes them more attractive attract-ive to new business. That is the reason a 'yes' vote on Constitutional Consti-tutional Amendment No. 3 will be vital this November," the Salt Lake City businessmen said. Mr. Johnson said "a 'yes' vote will be a matter of survival sur-vival and growth for the state. "Utah began moving ahead when Freeport was approved by the voters a few years .go. Now Freeport must be extended extend-ed if we are to remn competitive com-petitive with our neighboring slates." Vera Braze)',, executive vice chairman or Help Utah Grow, noted replacement revenue is available if the inventiory tax is phased out. "The State Tax Commission audits have clearly established that replacement revenue is available. This means a 'yes' vote on Amendment 3 will be a boost to the entire state. The replacement funds will come from other business taxes." Mr. Brazell continued: "We have gained great acceptance on the amendment change because be-cause of two major items: 1) the replacement revenue is available, and 2) there is no cost to the indidividual taxpayer. tax-payer. It is a business tax now and it will continue to be. The phase out of the inventory tax and the shouldering of the tax load by equipment and fixtures tax will take place in an orderly order-ly fashion as ordered by the State Legislature." Mr. Brazell noted the 1968 state party platforms for Republicans Re-publicans and Democrats in' elude endorsements in favor of the amendment. Gov. Calvin L. Rampton and Carl W. Buehner |