State's 'reading' tax may get the ax

Utah legislators are looking at giving all property taxpayers a small tax cut.

In light of rising home prices, with some homeowners facing large property tax hikes this year, the Legislature's Revenue and Tax Committee Wednesday heard a proposal to take off a special "reading" property tax that all of the state's 40 school districts levy.

Instead of local property taxpayers picking up that $15 million tab statewide, the Legislature would just pay that money out through its regular basic Uniform School Fund disbursement.

In other words, property taxes would go down a bit and the state would pick up that tax, coming mostly as school funds do through the personal and business income taxes.

Since the state continues to run tax surpluses, lawmakers would not increase the income tax but just take the extra $15 million from tax growth.

The idea seems worthwhile to Sarah Meier, president of the Utah School Boards Association and the Granite Board of Education.

"I don't know that we care what the source is, as long as the funding is kept whole," Meier said.

At issue is former Gov. Olene Walker's reading program, designed to give extra help to children in kindergarten through third grade.

The program was a pet project for Walker in 2004. But a political stand-off took place over the $30 million price tag. Finally GOP legislative leaders said they would fund $15 million — $2.5 million of it in one-time money — if local districts would match the rest. School boards wanting the state money have levied a special property tax to pull it down.

The program is popular with school districts, many of which are hiring reading specialists and giving teachers more specialized literacy training. Several reports have shown that children are doing better in reading since the program took effect; Granite District issued such a report Tuesday night, Meier said.

"We are making a difference — particularly with the kids who are at risk, but everybody is rising," Meier said.

But with homeowners facing higher property tax bills this year, the Legislature should act to help them if they can, Rep. John Dougall, R-Highland, said. He's looking at the reading program levy to give property tax relief.

"Some (legislators) didn't want to do this reading program at all," said Dougall. Some wanted the state to pay for all of it. Some wanted to have the local districts impose a new "reading" property tax for half the cost, and the state picking up the rest.

But the proposal would distribute the money differently than it is now — part for enrollment, part for numbers of low-income students — opening the potential for winners and losers, said Larry Newton, director of school finance and statistics for the State Office of Education.

"What has to be looked at is, how are (legislators) going to hold schools harmless so we don't have reading programs doing a good job out there put in jeopardy," Newton said in an interview.

"I'm not worried at all (about it). I think that Rep. Dougall has all the intents in the world to ensure that if we do make this transition, districts and charter schools won't be harmed."

"We will have much more discussion on this," Dougall said.

---

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

Recent comments