From Deseret News archives:
Airlines again ask state for tax break
Delta, Southwest reps to testify before task force
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Those cuts came after intense negotiations between Valentine and Salt Lake City Mayor Rocky Anderson. Under those cuts Salt Lake City's Department of Airports lost $1.25 million annually, which Anderson maintained would be palatable because it would promote "consumer-friendly competition" between the airlines.
During those 2001 discussions Delta maintained that 43 cents of every dollar of profit it earned in Utah went to taxes.
"We are seeking some relief on the amount of tax that we pay there; that's the bottom line," Delta spokeswoman Alicia Watson said then.
Holbrook said this year's strategy will be twofold: keep the tax cuts gained in 2001 and seek even more state concessions.
"We want to keep the tax cut they have and maybe get some more," she said.
Still, Southwest district manager Ronan Rogers was a bit leery, especially since Valentine once advocated giving tax breaks only to Delta, forsaking smaller carriers.
"The last time Senator Valentine held hearings on that, it wasn't very friendly toward the airlines," he said.
Campbell noted that Utah's tax burden for airlines isn't overly high and isn't really a factor in determining how airlines expand service in Utah.
"They're not going to add or cut service here based on our reasonable taxes."
E-mail: bsnyder@desnews.com
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