Corroon vetoes property tax hike

Salt Lake County Mayor Peter Corroon broke ranks with his Democratic council colleagues Thursday and vetoed a proposed property tax hike approved two weeks ago.

The proposal, passed by the Democratic-controlled council on a 5-4 party line vote, would have shifted more than $5 million in county debt service from sales tax to property tax collections — upping annual tax payments on a $250,000 home about $10.

Corroon, who has maintained a position against the idea from its inception, released a statement Thursday defending his decision.

"Given the current state of the economy, with increasing unemployment and foreclosure rates in Utah, and considering that the 2010 budget gap can be closed with prudent cuts in spending, this is not the time to increase property taxes," Corroon said. "Several taxing entities have already increased property taxes for 2010. This is not the time for the county to pile on."

While Democratic Council Chairman Joe Hatch said he understood the mayor's use of his executive authority to override the council's vote, he was disappointed in the decision.

"There is a huge policy dispute on the council," Hatch said. "In the short run, Democrats feel that things are much more serious than the Republicans and the mayor … on that issue, the mayor and Republicans prevailed."

Though recognizing a victory for Corroon and council Republicans on the property tax issue, Hatch said the mayor's decision may have undermined Democratic support for other proposals coming out of his office, including a short list of 2009 budget cuts that will be put to a council vote on July 14.

"Right now, the philosophical view of the mayor and Republicans is we don't need additional tax revenues for 2009," Hatch said. "If we don't … then I'm probably opposed to the cuts proposed for 2009."

Those cuts include a 1 percent reduction in the wages of all county merit employees, the elimination of a contribution to the Restaurant Association and two fund shifts.

Councilman Jeff Allen, the minority party leader, lauded Corroon's decision Thursday.

"I'm glad he's sticking with his beliefs that it is not the time to raise taxes," Allen said. "I think it's a smart course of action."

Allen said he was surprised at the breakdown in party unity, but pleased that the mayor used his veto power to ease the load on taxpayers.