Tax Freedom Day and deadlines loom

Here's some bad news: Since Jan. 1 of this year you've been working to pay your taxes.

And you won't be earning any money for yourself until April 13, two days before you must file your state and federal income taxes.

Congratulations: for 3 1/2 months you've basically been working for the government.

April 13 is Tax Freedom Day for Utahns, says the national Tax Foundation, which each year calculates how long it takes the average resident of each state to earn enough money to pay his or her local, state and federal taxes for one year.

The 2009 study, released Tuesday by the tax watchdog group, based in Washington, D.C., finds Utah with several number 13s.

 April 13 is the overall day that Americans earn enough money to pay their taxes this year.

 April 13 is also the day Utahns achieve Tax Freedom Day.

 Utah ranks 13th nationally as the state that sees the latest Tax Freedom Day in 2009.

This rather sobering news is not a surprise to the Utah Taxpayers Association, a local group that has watched state and local taxes in the Beehive State for years.

"Utahns labor under one of the highest tax burdens in the country," said Royce Van Tassell, vice president of the Utah group. "Despite our reputation as a politically conservative state, Utah taxpayers work an incredible 103 days before they have paid off the tax man."

Utahns' rather high tax-burden ranking comes even though the state Legislature has cut taxes in recent years.

The state sales tax on unprepared food has dropped from over 4 percent to 1.75 percent. Personal income taxes for most Utahns have also been reduced, the top rate going from 6.98 percent to 5 percent.

However, Utah still suffers from relatively low family incomes — which historically has driven the high-tax burden status.

Utah also doesn't fare too well compared to surrounding Western states, the report finds.

New Mexico's Tax Freedom Day is April 2; Wyoming's April 5, Nevada's April 8; and both Idaho's and Colorado's is April 12.

Historically, in times of recession the Tax Freedom Day comes earlier each year. And Utah's freedom day was April 21 in 2008, before the current recession really kicked in.

Utahns pay all the major taxes — property, sales and income — in addition to hundreds of state and local fees that help support government. Only seven states don't impose a state personal income tax, the major tax burden, when combined with the federal income tax, that Americans face, the report says.

Utah also allows for a number of so-called "boutique" sales taxes, like resort and restaurant sales taxes.

The Utah Taxpayers Association especially dislikes these taxes because they are relatively easy to put on (in special elections) and sales taxes aren't readily seen by the public when purchases are made, and thus they are more tolerated by the electorate.

Said Van Tassell: "The average Utah family pays more in sales taxes than they do in property or state income taxes.

"Some legislators and local officials are willing to push Utah's sales taxes to 10 percent or higher." Van Tassell said. "This report should serve as a wake-up call to all Utah elected officials: Utahns cannot wait until April to start taking their own money home."

E-MAIL: bbjr@desnews.com