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Show Tax Revenue Report Released Tues. The pennies collected from the sales tax have added up to revenue receipts totaling more than$270 million for the state of Utah during the past twenty-five years. This fact is revealed by Utah Foundation, , in their latest study of Utah's sales tax. It was observed that the 2 Utah sales tax produced nearly $24,500,000 during the fiscal year ended June 30, 1958. If the same sum were to be raised from the property tax, a state wide levy of 19 mills ($19.00 per $1,000 assessed valuation) would be needed. Accordnig to the report, Utah ' is one of 33 states which impose a state sales tax. Washington has a 3 and one third per- cent state sales tax rate, sixteen . states a Z rate, two states av 2 rate, thirteen states (including Utah) a 2 rate, Indiana a of 1 rate, and fifteen states do not have the tax. These rates do not include local sales tax rates which are permitted in a number of states. California ,for example, allows local units to levy a 1 local sales tax in addition to the Z state sales tax rate, making the total effective sales tax equal to 4 in most Calif, cities and counties. Although the sales tax was originally imposed by most states during the depression years as an emergency measure, it has gained renewed popular-ity popular-ity during the postwar era of economic growth and inflation. in-flation. The reports points out that ten states and more than 1,400. local units of gov. eminent throughout the United States have adopted the sale tax since tthe close of World War II. Foundation officials surmise that it may well be that much of this post-war popularity in . the sales tax among the states has developed as a counter (Continued on page 5) TAXES (Continued from page 1) movement to high Federal income in-come tax rates. With much of the potential income base preempted pre-empted by the Federal Government, Govern-ment, states are forced to turn to consumer spending &s a principal source of additional state and local government revenue." The tax study notes that within the past few years an increasing number of municipalities munici-palities throughout the nation have turned to the sales tax as a means of solving their local financial problems. Local sales taxes are now imposed by municipalities in ten states. On January 1, 1958, there were 1,418 municipalities and counties coun-ties using the sales tax. Several official committees, groups, and public officials studying local government finance problems in Utah have recommended the adoption of a local sales tax as a means of solving the financial dilemna facing Utah's principal municipalities. munici-palities. The entire matter is npw under consideration by the Utah Legislative Council. |
