The Utah Taxpayers Association believes a pair of recent Utah tax rulings appear to indicate that taypayers have a constitutional right to refer new taxes to the vote of the people, but not increases in existing taxes.
"We are shocked and dismayed at the recent court decision which rules that Utah citizens do not have the constitutional right to refer tax increases of local governments to a vote of the people," Howard Stephenson, president of the Utah Taxpayers Association, said."Sixth Judicial District Court Judge Don V. Tibbs' decision upheld Sevier County's refusal to honor a referendum petition requesting a vote on the county's nearly 50 percent 1991 property tax increase."
This ruling by Tibbs was unexpected by the association, in light of a favorable ruling that it received earlier this month from Judge Ray M. Harding concerning a new Payson City utility tax. In that case, the judge declared that the enactment of a new tax is a legislative act and therefore subject to a referendum vote.
"City officials refused to certify our petition so we were unable to collect signatures within the 30-day time limit," Stephenson said of the Payson incident. "But Judge Harding said citizens could have collected signatures even without city approval of the petitions."
Stephenson also said that the Utah Constitution provides that citizens can petition to vote on any law or ordinance at the state and local level, although Tibbs ruled that this does not apply to tax increases.
"The ruling just doesn't make sense," Stephenson said.
The Taxpayers Association is now hopeful that the Utah Supreme Court will see things differently.
The association is now considering its next course of action with its attorneys and citizen groups in Sevier County and Payson, since additional funding may be required.
"We welcome citizen comments about what our course of action should be," Stephenson concluded.