Cutting the property tax
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t was the union man Sidney Hillman who described politics as "the science of how who gets what, when and why." In the upcoming session of the state Legislature, coming as it does during an election year, we shall doubtless see many fine examples of Hillman's "science."
But perhaps more obvious than most of the usual political wrangling will be the debate over property taxes. Or, more to the point, just how much of a break will voters get?
It was widely reported last week that state GOP senators emerged from a three-hour caucus united in their commitment to providing property tax relief. It will happen, they said -- although no one is yet sure what form the tax breaks will take.
Likewise, the GOP-controlled House is committed to a property tax cut.
Gov. Jon Huntsman's proposed $11.7 billion budget for next year did not presage any tax cuts, let alone property tax reductions. In all likelihood, that's because he's somewhat insulated from the loud bellowing from property-owning constituents of state lawmakers, who are alarmed by sudden spikes in their property taxes as the result of sharply rising property valuations.
The lawmakers have heard from the people, and the people are angry. As we've said before in this space, voter discontent threatens to upset the apple cart of incumbency unless the Legislature acts decisively to soften the property tax blow. Utahns seem to be most upset that their property taxes remain level for years at a time, then suddenly bolt skyward all at once.
So, senators and representatives have been discussing a few possible remedies, including caps on annual property tax increases, increased protections for those on fixed incomes -- especially retirees -- and even removing some levees now tied to the property tax, like school reading programs, and paying for those with other state revenues. But that's just a start to the possibilities.
Huntsman, during a recent meeting with the Standard-Examiner's editorial board, said he thought the fact that $220 million worth of tax cuts enacted during the 2007 legislative session will kick in on Jan. 1 would be enough for legislative candidates to take back to their districts and impress voters: "I think since the historic and record tax cuts will take effect first thing in '08, that is the most consequential deliverable that any elected official can bring home to the voter. ... Considering that they're record tax cuts that we're talking about -- historic by every measure; we've never seen anything like it before -- if that isn't a major deliverable on tax cuts and on tax simplification, I don't know what would be."
That argument may look good to the governor on paper, but it won't wash with the people who saw their property tax bill jump 100 percent, 200 percent or even 300 percent in a single year. And that's why lawmakers will respond -- because they have no choice as they yearn to run unchallenged in their own party and to be re-elected come November 2008.
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