From Deseret News archives:
UTA asking 6 counties for tax hike
County leaders worry how residents will perceive the move, especially as voters in Utah and Salt Lake counties already increased their sales tax this November by a quarter-cent to build commuter rail and new TRAX lines. Box Elder, Weber and Davis Counties are considering a similar quarter-cent tax hike this fall.
The increase that UTA wants is 0.05 percent and would help restore about $17 million in funds lost as result of the food-tax reduction. UTA officials say their request is not meant to gain additional revenue, but to keep current revenues whole.
Utah County has already approved the 0.05 percent increase, and Weber and Salt Lake counties are considering the option. UTA has been in preliminary discussions with Davis and Tooele counties, in addition to Brigham City, in Box Elder County, about the increase.
"I was told that UTA could probably live with the reduction within their existing revenues," said Salt Lake County Councilman Joe Hatch. "I think everyone needs to shoulder up to the removal of the sales tax on food."
"It results in a net decrease in sales tax and a shift in the burden away from low-income people," Jones said.
Utah County Commissioner Steve White said his county approved the increase after the legislative session. The approval was given without a public vote, but White said without the additional money, UTA would not be able to afford to build commuter rail to Provo. The line would have stopped in Vineyard.
"Whatever side of the sales tax on food debate you come up on and there are logical reasons for both for me, it was crystal clear that you don't undo an election because of an action of the Legislature," White said, referring to the November vote by Utah County residents to raise their taxes to build commuter rail to Provo.
"I was more than willing to put that tax up enough to take care of the problem."
UTA said it plans to meet with county leaders over the remainder of the year to talk about implementing the tax hike. The reduction in the sales tax on food is effective this coming January 1.
E-mail: nwarburton@desnews.com
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