In my last post a couple of weeks ago, I highlighted the the legislature’s move to slap a tax increase on middle income families. I urge voters to question incumbents (such as Ray Ward) on this tax and spend craze. However, there’s another surreptitious tax increase and I finally got around to highlighting it.
It turns out Ray Ward also supported freezing the property tax rate for five years. “Freezing” sure doesn’t sound like an increase, does it? That’s the sophistry politicians hope you fall for. Don’t.
Here’s the trick: Property tax rates are normally variable and the dollar amount cities/counties collect on your property is fixed. For example, if the dollar amount is fixed at $1,000 for your home and it is worth $100,000 the variable rate is 1% (100,000 X 0.01 = $1,000). If next year your home’s valuation jumps to $200,000 then the variable rate drops to 0.5% (200,000 X 0.005 = $1,000) to maintain the fixed dollar amount.
The above system was turned on its head for five years. Thus, if your home increases in value it will be taxed at the same rate and government reaps the windfall profit. In our above example, if your home valuation jumps to $200,000, it would still be taxed at 1% and your would pay $2,000 in property taxes with politicians having extra cash to play with in their sandbox. The crafty plan is banking on home values continuing to spike (and trust me, if the bubble bursts, they’ll rapidly move to ensure no loss).
The property tax manipulation is yet another gut punch for middle income families courtesy of many incumbent legislators.
They will shove a question on the next election ballot asking for a 33% increase in the gas tax from $0.29/gallon to $0.39/gallon.
Here’s the flimflam: A few actual conservative legislators asked that they phrase the ballot question to include the percent increase (33%) or the old/new rate (0.29-0.39/gallon), thus giving voters clarity and context. Niet! said our liberal GOPe legislators and blocked the motion. Now the Chamber et al. can try to pull the wool over naive voters and spin the increase as ‘just a small 10 cent increase’. It’s a significant increase ($2.00 per fill-up) and will impact family budgets. In addition, it will not add even one penny to road funds since the amount going to roads from the general fund will be reduced by the amount of the increased fuel tax.
Ray Ward is the only incumbent in a primary in South Davis County right now (Edwards isn’t running). He’s supported three tax increases on middle income families (really a triple whammy). I would certainly look at his opponent (Phill Wright) as Ward is neck deep in heaping burdens on families. Regardless of where you live, check on how your incumbent has voted for the above.
Please, no more Whammies.
Full Disclosure: I know and support Phill Wright but am not affiliated with his campaign.