The Salt Lake City Council is considering a property tax increase as part of their 2013-14 budget. There has been very limited public discussion of this tax increase and Mayor Ralph Becker has indicated that he will veto the proposal. The Council is scheduled to vote on this issue next Tuesday, June 18, and at this point it seems likely to pass.
Currently, five members of the City Council have indicated that they will support the tax increase: Soren Simonsen, Jill Love, Luke Garrott, Charlie Luke and Kyle LaMalfa. Carlton Christensen and Stan Penfold oppose proposal. Once the Council passes the tax increase, and provided that they retain the votes necessary to override Mayor Becker’s veto, the Council will hold Truth in Taxation as required by State law.
We think it is important that you are aware of this discussion. It will have an impact on every property owner in Salt Lake City, but a disproportionate impact on business. We have expressed our concern to the City Council about the process for making this decision. We encourage them to engage in a more well-rounded and robust community dialogue before raising taxes.
Based on input from our local property owners and 2012 valuations, and given the complexity of the ever changing property values, the estimated additional property tax impact ranges from $631 for a small-business, such as Squatters, to $82,080 for the Wells Fargo Building.
In addition, Salt Lake City has a robustly growing sales tax base. The City realized a 7.6 percent growth in sales tax revenue compared to a state total of a 4.5 percent increase from Q4 in 2011 to Q4 in 2012. This 70 percent growth in sales tax calls the need for additional property taxes into question.
Additional information on the proposed tax increase can be found in these articles:
Please let us know if you have concerns about this tax increase or the process for making this decision. If you are willing, please reach out to city officials to express those concerns.
Charlie Luke - email@example.com
801.535.7784Liaison: Amber McClellan - firstname.lastname@example.org
Søren Simonsen - email@example.com
801.535.7715Liaison: Brian Fullmer - firstname.lastname@example.org
This post was written by Jason Mathis, Executive Vice President of the Chamber and the Downtown Alliance Executive Director. It originally appeared on the Utah Pulse.