From Deseret News archives:

Chamber proposes tax hike for TRAX

It would give Utah third-highest total tax burden in U.S.

Published: Wednesday, June 21, 2006 11:50 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
The Salt Lake Chamber of Commerce wants voters to approve a sales-tax hike this fall that would raise the tax amount dedicated to transportation to a total of 1 percent in Salt Lake Davis, Weber and Utah counties.

The money would be used to more than double the amount of transit along the Wasatch Front. But it also would give those Utah residents the third-highest total tax burden in the United States.

The chamber's proposal comes just three months after lawmakers reduced the state's portion of sales tax on food by two percent, or $70 million.

Leaders of the chamber, which is Utah's largest business association, said that building transit projects now is critical to the state's economy. On Tuesday, chamber leaders and a group called the 2015 Transportation Alliance unveiled their plan to increase sales tax in order to help build projects like four planned TRAX extensions in Salt Lake County and commuter rail to Utah County.

Their plan is substantially more ambitious than one being floated by the Utah Transit Authority to raise property taxes in Salt Lake County in order to fund just the four TRAX extensions.

Groups like the Utah Taxpayers Association and some lawmaker have already lined up to oppose the chamber's plan. But the chamber leaders say they're ready for the challenge.

Story continues below
"In the long term, this affects more people than the Olympics did," said Chamber President Lane Beattie. "To keep the economy growing, we must keep goods and people flowing."

To get the sales-tax increase on the ballot this November, the chamber must go through a two-step process. First, it must get Gov. Jon Huntsman Jr. to call a special session of the Utah Legislature to approve a bill authorizing counties to put the sales-tax increase on the ballot. Second, it must get county governments to also vote to put the increase on the ballot.

Huntsman spokesman Mike Mower said Tuesday that "there are no plans to call a special session at this time." But the governor is interested in reviewing the chamber's proposal and "continuing discussions with legislative leadership and the Chamber of Commerce about the transit proposal," Mower said.

Senate President John Valentine, R-Orem, said Tuesday that he plans to discuss the proposal with Republican senators during caucus meetings today. Opinions are already mixed.

"Some of them are pretty warm to the idea and some are pretty cool," he said. "I feel somewhat schizophrenic, because we just reduced the sales-tax base, and now there's a call for a big sales-tax increase."

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

Will state consider gay rights law?

re Bob | 8:03 a.m. Nov. 12, 2009 "As a property owner I should have the...

Celtics crush Jazz

the vocal, ignorant in this case, minority who say Sloan is part of the...

I like RSL and what it brings to Utah, I love the World Cup and is one of...

TCU won't raise BCS fuss

you are right BYU was not in the same class this year as TCU, but you were...

Tavernari has matured

He has been so great and fun to watch in the NCAA Tournament. I really think...

I hope both teams play hard. I know SJ has hit the weights in the offseason...

Tavernari has matured

Ya, it's tough when an athletic team like Utah wins the conference last year,...

Celtics crush Jazz

Boozer's mouth and previous statements are an issue mostly with the fans and...

Tavernari has matured

We all know that there are no U fans, just BYU haters. Wouldn't is be nice...

A successful conclusion to a war means the enemy is no longer capable of...

Advertisements
Advertisement