This is close to what I have in mind. "Acquisition Value" (AV) taxation system seems very close to this synopsis. We discussed his plan over lunch with several other "Wing men". Bert seemed to agree that a "look back" several years would need to be established as a base assessed property value. Then either a set percentage or a percentage based upon the January announced Cost of Living Adjustment (COLA) would be applied each year to determine the new property value.
The tax rate, we agreed, should be a set standard rate (perhaps at 1% of the newly established property value.
This is a simple and very clear method.
Another discussion centered on commercial property. The initial consensus was to treat commercial identical to residential property.
And finally. "Centrally Assessed Property" was discussed. In case you are unfamiliar, centrally assessed property consists of the big corporations which are found in many counties and cross State lines.
There has been a near total shift of property tax burdens over to us over the past ten years or so. The big boys with their lobbyists are effective in getting the property taxes virtually exempted from any taxation, which of course shifts the property tax burdens to primarily residential property taxation and some commercial property taxes. Small businesses are generally hurting as much as we are (except perhaps in Weber County)...who knows with no "Truth in Taxation" or budget information coming out of the terrible trio.
We have no solutions for - nor ideas to resolve, the Centrally Assessed Property situation yet. But we are working on it with a political consultant with expertise in this area.
This one is, as the Brits say, "a sticky wicket" in that it is a fundamental truth in economics that corporations do not pay taxes, only consumers pay taxes. The corporations just pass them along to consumers in the form of higher prices.
But it would seem to me that a formula could be worked out based upon a corporation's net profit, perhaps taxing over a certain percentage amount. But that seems to cross over from property taxation to income taxation.
We need your ideas on this one. Think in terms of Quest, Kennecott, Union Pacific, Pacificorp, Worldcom, Kern River Gas Transmission, Voicestream Wireless, Delta Airlines, Questar Gas, AT&T Wireless, Verizon Wireless, and IPA the largest Centrally Assessed Corporations in Utah. Consider the services they provide us and how they deliver them. Then think about ways to have them share our personal and business tax burdens which will not be readily just passed along to us consumers.
Perhaps in-State residential and commercial credits to our gas or other utility bills. In-State automatic discounted rail freight charges from Union Pacific enabling more profit to small business users. Or phone bill and Internet service in-State credits for users of Version, AT&T, and Quest users, or airfare tickets price breaks for Utahans who fly, etc. These types of user "reverse fees -if you will", in lieu of local governmental funds being further stuffed with cash. Fees in lieu of taxes in reverse...or is that too obtuse? If there is a taxation burden shift in other words, let the "shift" cross State lines enabling increased personal wealth for Utahans who are already the fourth (4th) highest taxed citizens in the Nation with below the national average earnings. Let's work of increased effective earnings by consumer monthly rebates from these monster corporate leeches on our bank accounts.
Question; where is the old Public Service Commission? Where have they gone? Has anyone even heard of them in the past five years? Are they like the State Tax Commission a "toothless watch dog" now? What has the Governor and/or the legislature done to or with them?
If we take the usual "WHAT?! Tax those suckers. Always tax everyone else but me!", we are being wrong headed about this whole thing. Simply raising tax monies for local governmental spend thrifts (squanderers), which have no apparent accountability to constituents is not a good solution.
Simply making it easier for those Bert Hulet suggests be put on "Diet Cola", to bring in hundreds of millions more dollars, with no real legal cost benefit analysis measures. Or cost effectiveness public legal hoops to abide by and be accountable to constituents is just more of the same. A bottomless abyss and insatiable appetite to spend without accountability, except at the ballot box four years too late. We could use a recall provision by the way Senators and Representatives out there... to get rid of these scum sucking pigs (excuse me) well meaning public servants much easier...while we are lobbying for property tax reform and ethics reform.
Think out of the box friends and neighbors and let me/us know your ideas by posting them in the "Comments" on this site, so we can all think through them. Simply use the anonymous button if you are worried about what someone else might think of your idea. You don't have to identify yourself if you are shy or tepid.
Minor Machman
