From Deseret News archives:

Utah taxes cut about $50

Legislators also agree to option hike for transit

Published: Tuesday, Sept. 19, 2006 11:48 p.m. MDT
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The House voted down an attempt by Democrats and moderate Republicans to put off the income tax cuts for a year and give the $78 million to public education.

And the Senate voted down an attempt by some conservatives to increase the tax cut — maybe by as much as $75 million — by lowering the flat-tax rate from 5.35 percent to 4.9 percent.

The transportation tax had to pass by two-thirds majorities so it could become law in time for Salt Lake County voters Nov. 7 to pick the sales tax — rather than the property tax — to repay a nearly $900 million transportation bond.

House Republicans needed, and got, enough Democratic votes to pass the bill 55-19, just over the two-thirds required. In the Senate, Majority Leader Pete Knudson, R-Brigham City, said he thought the measure would fail. But it passed, 24-5.

GOP legislators debated at length how much autonomy to give officials in Salt Lake County in deciding which transportation projects they pick to build with the new tax.

While no Republicans would say on the record, behind the scenes several lawmakers said there was concern that the Salt Lake County Council was only one person away from switching from a Republican majority to a Democratic majority. And that power shift could come in November's election.

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Ultimately, the transportation/sales tax bill was changed so that Salt Lake County would have to pick between a sales tax hike for roads and rails or a property tax increase, but officials couldn't adopt one and then come back to voters and ask for the other later.

The new law specifically says that large counties can't use their property taxes for rail but may use it to pay off road bonds.

In a morning committee hearing, few members of the public objected to the transportation sales tax hike.

However, a representative of the food retailers said some are concerned that poor choices may be made and that mass transit may be favored over roads. Most foods are brought to market with trucks over roads, said Jim Olsen of the food retailers.

Mike Jerman of the Utah Taxpayers Association said a special session is the wrong place to make such major tax decisions.

He said he, too, worried about how decisions will be made on whether to build roads or rails, and how benefits will be weighed.

Jerman said while the Utah Transit Authority may want to build a new TRAX line to the Salt Lake City International Airport, cursory reviews of that $290 million project show it will have little, if any benefit, on reducing road congestion in the valley — what should be a major goal of any Salt Lake County "mobility" transportation plan.


E-MAIL: bbjr@desnews.com; lisa@desnews.com

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