Utility tax fight may hit Idaho residents

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  • Spoc Ogden, UT
    Sept. 14, 2012 5:19 a.m.

    Utility rates are set by a government entity to cover operational expenses, profit, and taxes. Lower the tax rate because of lower property value and the citizens pay less. Then the County raises taxes to make up for the difference and the citizens pay more. It doesn't change the spending of the county or the expenses of the citizens.

    Under the current plan the utilities simply act as a collection agency for the counties to collect a portion of the taxes they spend. The only difference is that it is much more visible when paid with personal property tax and the elected representatives become accountable for their spending.

    The truth is that in the end, taxpayers always pay all the taxes. Businesses do not pay taxes, they simply add it to their prices. But then it is hidden from the citizens and the legislature doesn't feel the heat from the voter.