Fees quack like taxes

In an election year, lawmakers are hesitant to raise taxes. But fees for professional licenses, hunting licenses, commercial driver licenses and teaching certifications are fair game for increases, as are fees for ambulance inspections and some medical services agencies.

All told, more than 500 fees will increase year, generating an estimated $4.5 million in new revenue. Most of the fee hikes aren't oppressive, but they can accumulate over time and, like taxes, some of these "revenue enhancements" will, undoubtedly, be passed along to consumers. Last year, fee hikes raised an estimated $1.7 million.

While these fee hikes are often necessary and are targeted to help specific government departments, care must be taken to ensure that fees aren't being increased to raise money in lieu of hiking general taxes.

This is likewise a concern with a legislative proposal that would have placed a $32 surcharge on all fines imposed by justice courts. The surcharges would have raised about $9 million a year, part of which would be used to improve security at justice and juvenile courts and reimburse counties for the cost of inmates who are sentenced to county jail for violations of city ordinances. Part of the money would have been used to link justice courts via technology to the state court administrator's office so the state can keep track of justice court cases, in particular drunken driving cases. This is a cause the Deseret Morning News has long championed.

Although the measure was defeated in the House on Tuesday, the surcharge envisioned in SB196 illustrates the considerable challenges lawmakers face in balancing the state budget each year.

There's got to be a better way to make ends meet. Gov. Olene Walker has championed total tax reform, which would require a comprehensive review of Utah's tax code, including income tax, property tax, sales tax and tax credits.

Previously, Walker announced she will conduct public hearings in the coming months and prepare legislative proposals for the 2005 Legislature.

This is an election year so some policymakers will be reluctant to embrace any changes in Utah's tax structure. But, Utah must begin planning for the massive population booms demographers foresee — some 2.7 million more Utahns by 2020 and 5 million by 2050.

Utah has been able to cobble together a budget using a nickel-and-dime approach the past few years. But the time has come for a more comprehensive look that provides a stable revenue stream, enables respective governments to plan for the future and more fairly spreads the tax burden between Utah businesses, which are among the least taxed nationwide, and Utahns, who carry some of the heaviest individual tax loads. Walker is to be commended for her foresight and her political courage for taking on this important issue.