TAXES AND FEES

Rep. Mike Morley

As we evaluate our state’s ranking of the 9th highest in overall tax burden in the United States, we must evaluate each of the areas of taxation and fees which make up this ranking. In doing so, I recognize that much of my information comes from the Utah Taxpayer’s Association, part of a broader taxpayer organization with affiliations throughout the United States. This information is somewhat sobering as we consider the perilous economic times which we are currently in and as we factor our ranking as first in personal bankruptcies into the mix it becomes evident that the dream of living and working in Utah is becoming increasingly difficult.

According to the April issue of The Utah Taxpayer, “Utah’s state and local tax burden as a percent of personal income rose from 10th highest in FY 1999 to 9th in FY 2000, in comparison with all 50 states. When fees are included, Utah’s total burden was 10th highest in the nation, down from 9th highest in the previous year. Although Utah’s state and local tax burden increased, Alaska increased even more, lowering Utah’s ranking.”

Those items contributing to our tax ranking including the following:

Total Taxes and Fees - 10th highest, 12.5% higher than national average
Taxes without Fees - 9th highest, 7% higher than national average
Motor Fuel Taxes - 7th highest, 71% higher than the national average
General Sales Taxes - 9th highest, 36% higher than the national average
Individual Income Taxes - 13th highest, 24% higher than the national average
Property Taxes - 35th highest, 16.9% below the national average

Utah State and Local Expenditures by Function

Function	% Gen. Expend	Rank	% US Avg	% of Personal Income	Rank	% US Avg
Education	36.7	8	111	8.0	4	129
Welfare	13.4	37	86	2.9	25	100
Transportation	9.4	15	139	2.0	11	162
Public Safety	8.5	25	91	1.8	13	105
Govt. Admin	7.1	4	130	1.5	3	152
Debt Interest	3.5	41	75	0.8	35	87
All Other	21.4	41	86	4.6	21	100
Total	100.0	N/A	N/A	21.7	14	117

As I have indicated in my opening editorial, one principal to which I am truly committed is that of fiscal responsibility and holding government responsible for its spending. I believe in Utah, even with our unique demographics which, by their very nature, require considerable spending for education, roads, and human services. We simply must be more responsible to keep government spending to a minimum.

I will do all in my power to support limited spending and will support legislation which will hold our spending to no more than the population increase, factoring in inflation. Over the past 10 years, our spending has exceeded that ratio considerably, keeping us one of the highest taxed states in the country.

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