If all three tax initiatives were to pass in November, state and local tax revenues would be reduced by $329.7 million, according to a report by the private tax research organization Utah Foundation.
The study indicates that local property taxes would be reduced by $184.9 million; state sales, cigarette, income, gasoline and diesel fuel taxes would be reduced by $141.4 million; and income tax revenues would be further reduced by $3.5 million due to tax credits to parents with children in private schools.Utah Foundation analysts, however, said Utah's economy is growing again after three years of stagnation. As a result, the reductions that would occur if the tax initiatives are approved might be partially offset by this growth in the tax base and in tax revenues.
The total reduction in property tax revenues, however, might be greater than the amount currently estimated because the actual property values in Utah have declined during recent years and in some cases are below those indicated on the property valuation notices. If those discrepancies are corrected, it would result in an additional revenue loss.
The Utah Foundation study also indicates that Utah's highway program would be most adversely affected by the proposed initiatives. Revenue to state highway programs would be cut by $41.3 million.
The study indicates revenues to counties would be cut by $58.6 million and to cities by $26.5 million.