To: Dean Sanpei,
Subject: PLEASE SUPPORT HB84
Date: Thu Feb 27 16:48:04 MST 2014
Thank you for your great efforts in serving our community. We are asking for your strong support of HB84 which will likely be discussed on the House floor today. While this bill impacts the division and creation of new government entities, it is a bill that will protect taxpayers.
Current law requires that when a new city is created, that the new entities revenue cannot exceed more than 5% of the previous costs. This is sometimes referred to as the 105% rule. This prevents new government entities from cherry picking or choosing their tax base by incorporating areas with higher tax revenue while leaving the remaining area outside of the new boundaries.
This occurred previously and a great example is the efforts by Salt Lake City to incorporate the Brickyard Plaza area (a high commercial tax area) by carving around the residential area that surrounds it.
The legislature felt this was good policy for the creation of cities and HB84 takes this consistent and fair statute and applies it to other government creation and divisions (such as school districts). If passed, this law will prevent a city or inter local agreement from creating a school district by taking 70% of property tax revenue while only serving 30% of the student population.
If this tax policy and application is good for city incorporations, it should be good for school districts as well. This protects taxpayers and protects school children who do not get decide where they live.
We ask for your support. Please let me know if you have any questions. Thanks for your service.