Recall, end of taxes on personal property proposed

Utahns could be asked next year to make two major changes to the Utah Constitution: one that could cut taxes by $380 million; another opening the door to kicking unpopular politicians out of office midterm.

Rep. John Dougall, R-Highland, introduced a constitutional amendment Tuesday that if adopted by the Legislature and approved by voters in 2006 would eliminate property taxes and uniform fees on all personal property in the state.

It's far-reaching, he admits.

"But we've danced around this for years; let's get rid of it," says Dougall.

Currently, cities, towns, counties and school districts collect around $380 million a year in taxes and fees on individuals' cars, ATVs and other vehicles, on businesses' computers, furniture and the like.

State law says if personal property taxes and uniform fees dip because of changes to what is taxed, then there is an automatic shift to real property to keep local governments whole, notes Mike Jerman, vice president of the Utah Taxpayers Association, which supports HJR12.

So if taxes were cut from personal property, taxes would just go up on houses and businesses to offset the loss, he added.

But Dougall says he's studying whether there should just be a tax cut to local entities. If that can't be done, then how should other taxes be raised? Should there be a direct tax shift to real property or some other accommodation? Dougall asks.

Jerman says eliminating personal property taxes "supports economic development," always a goal of the taxpayers association. It's costly and difficult for businesses to work out equipment depreciation in order to determine how much tax to pay also, he said.

Beyond the tax implications, Dougall said, gone would be the almost constant fights among the Legislature and public over whether to tax this or that item and at what level.

Tuesday, the House passed HB53, a bill that would reduce the property tax rate levied on motorized mobile homes from 1.5 percent to 1 percent over two years.

Later this session, lawmakers will look at another bill that would cut property tax on ATVs.

Such piecemeal messing with taxes on personal property wouldn't even be discussed if the Constitution were just changed to eliminate those kind of taxes completely, said Dougall.

Meanwhile, Rep. Dave Hogue, R-Riverton, believes it's time to trust local officials and citizens to decide if an unpopular officeholder should be removed from office.

"We really don't have anything short of impeachment" to get rid of a mayor or county commissioner who badly strays, says Hogue.

Impeachment is a prolonged, messy problem that usually requires some kind of criminal conviction to get the guy out of office.