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
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As for House Republicans, Speaker Greg Curtis, R-Sandy, said a bill authorizing a sales-tax increase would be better suited for a general session of the Legislature. "That is, if the proposal doesn't require an urgency in the sense of doing it right now," he said.

Both the chamber and the Utah Transit Authority say there is an urgency. UTA still plans to move forward with discussions with Salt Lake County to put a property-tax hike on the ballot this fall to build four new TRAX lines. That increase would mean taxpayers would pay about $95 more in property tax on a $180,000 home. The revenues would bring $895 million to pay for a 30-year bond issued by the county.

Members of the Salt Lake County Council have said that bonding for $895 million is a little too much to request. Both Republicans and Democrats on the council say they support the chamber's proposal.

"That's the best mechanism," said council chairman Cort Ashton. "If we do any bond at all, it's not going to be for $895 million. It's going to be a number that makes sense."

UTA spokesman Justin Jones said: "I think the most important thing is that voters vote on this issue this fall, whether it's a property-tax increase or a sales-tax increase. I think the two efforts are not contradictory."

For more information about the chamber's sales-tax proposal, log on to: www.2015Utah.com.

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Later this summer, the chamber also plans to unveil a highway funding plan. That plan is likely to include recommendations for a gas-tax increase.


E-mail: nwarburton@desnews.com

Contributing: Leigh Dethman

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