From Deseret News archives:

Orem groups pushing arts tax

Published: Sunday, Sept. 18, 2005 9:18 p.m. MDT
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OREM — A handful of cultural-arts groups in Orem are dreaming about how they might spend a flood of potential tax dollars.

The Hale Center Theater could move to a bigger building. The SCERA would put in new seats and a better stage. More soccer fields could be created for recreation leagues.

But there's one big obstacle in the way — the Nov. 8 election. For such costly improvements to be made, Orem voters would have to approve a proposed tax increase of 1/10 of 1 percent.

As the calendar rolls toward Election Day, cultural arts lovers are increasing their efforts to make sure the measure passes.

Three years ago, a similar tax proposal failed on a countywide ballot. This year, some residents have created a group to promote passage of the measure.

"The concern that we have is mainly apathy," said Richard Davis, head of the committee pushing the Cultural Arts and Recreation Enrichment (CARE) tax. "People may not understand, they may not see the benefits and just say, 'Well, I don't understand it, it must be a bad thing' and vote no. We want people to understand (the tax)."

But would only a few groups benefit from the tax?

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It could be a sizable chunk of change — some $1.6 million a year, based on the city's sales tax revenue — that would be divided.

The phenomenon of "distributed costs, concentrated benefits," is what would happen with this proposed CARE tax. That is, according to Mike Jerman, vice president of the Utah Taxpayers Association, a large group of people have to pay for something that helps only a small group.

Then, those small groups become the loudest, staunchest supporters of the proposed tax. After all, he asks, who wouldn't want a government donation?

"Whenever free taxpayer money is being offered, people line up to get it," Jerman said.

Hale Center Theater in Orem is already in line to get its piece if it becomes available. It is seeking a status change from a private company to a 501(c)(3), or nonprofit organization, one of the requirements get the tax money.

In its current location at 225 W. 400 North in Orem, Hale can pay all bills with ticket sale revenue. However, the company's growth has left it busting at the seams and in need of a new building, said Ann Swenson, vice president of marketing for Orem's Hale Center Theater.

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