We take you to the Utah Legislature in 1994. Times are good, President Bill Clinton is leading the nation and some of the smart minds of Utah are seeing good times ahead.
The Speaker of the House opens the session greeting everyone and thanking the group for its dedication to the state. This particular gathering will be long and most involved will have to burn the midnight oil.
Virtually everyone who has made the trip to Salt Lake City is leaving behind them a small business or a various concerns related to family or friends. Not just anyone can be a lawmaker and for the money, it’s hard to understand why anyone would want to be a politician in the first place.
However, this particular session is going to be productive particularly since someone has it in mind to take advantage of Utah’s beautiful scenery and the people who visit the state. With the Winter Olympics coming to Salt Lake City in 2002, potential investors will most certainly follow.
Some 14 years later, the United States would fall into the worst recession in the country’s history. Considering the legislature’s keen ability to foresee the future, there is a plan in mind to bring money into the state by tapping the wallets of investors who are interested in purchasing land and/or second homes.
Even more interesting is that the plan would also give full-time residents of the state a 45 percent exemption on property taxes while requiring the owners of second homes to pay 100 percent. The legislation not only dives into the pockets of out-of-state property owners, but also those living in Utah.
From Park City in the north to Duck Creek and St. George in the south, permanent residents are welcoming visitors with open arms.
The idea is brilliant especially considering the thousands of investors who journey to Utah from surrounding states such as Nevada, Idaho, Wyoming, Montana and California, to name a few. The key, however, is to get the legislation passed quietly without letting investors know that they will be paying twice the amount charged to permanent residents of the state.
No problem. The state’s real estate agents will undoubtedly help hide the fact when selling land or second homes throughout the state. And besides, if anyone complains, those objecting can simply let their properties go into foreclosure generating yet another avenue for sales.
Mum’s the word. Full disclosure be damned, tax rates might be reviewed with clients but there won’t be a word discussed about the tax inequity when the real estate market explodes in 2005-2008. This is the perfect taxation without representation.
Why, there will be thousands visiting the state of Utah in search of second homes and raw land and many of those visitors will gladly plunk down big dollars for the right to enjoy the state.
Nobody will ever discover this huge tax inequity that is unless a full-time resident happens to tell a visitor. But I mean, how many times have you ever heard of residents discussing their tax rate, for God’s sakes?
This will become one of the most brilliant economic moves ever by a state legislature. Foreigners (that’s what they call visitors in Utah) from all over the United States will flock to Utah and visitors from other countries will fall in love with their new found second home.
After all, the summers in Utah produce fabulous scenery and the winters are to-die for considering the fact that the state is a definite Winter Wonderland. For desert rats living in Southern Nevada, this is a slam dunk since the real estate market will provide massive profits along with incredible change-of-scenery only few miles away.
Across every border in Utah there will be constant traffic consisting “foreigners” carrying check books and cash. Especially on Friday and Sunday afternoons, the Utah Highway Patrol will just inside each border waiting to write speeding tickets which will also generate big-time dollars for the state’s coffers.
On Jan. 1, 1995, the new law goes into affect. Permanent residents of the state of Utah can now officially expect a 45 percent deduction on their property taxes as the owners of second homes and land pay full-pop; even though the latter category of folks uses the services on a part-time basis.
Nobody will ever discover the legislation passed on New Years Day in 1995. Not even astute attorneys who purchase second homes and property in Utah will ever find out.
It was the best-kept secret in politics and measuring the monetary elements of the bill, it’s also a very profitable measure for the state of Utah.
Brilliant work, ladies and gentlemen of the Utah Legislature in 1994. Take a bow for your efforts.
Mike Henle is a Las Vegas-based freelance writer and the author of “Through the Darkness: One Man’s Fight to Overcome Epilepsy.” He can be contacted via email at mhenle@aol.com or through his web site www.mikehenle.com.
Comments
Burke Wilkerson - July 02, 2010
Shame on those bad old Utah politicians, and shame on those mean old Utah Highway Patrol Officers for picking on the poor old so called "Desert Rats" from Southern Nevada. And all this time living in Utah, I didn't realize that having a Utah license plate gave me permission to break the law? If I was a one of those "Desert Rats" living in Southern Nevada and so disconcerted about owning a second home on Cedar Mountain, I would quickly find the closest real estate broker and sell my property. I'm sure there are some beautiful mountain locations in central and northern Nevada where "Desert Rats" can build their second homes and finally be treated fairly. Maybe then, us residents of the bad old state of Utah can once again enjoy the beauty and serenity of Cedar Mountain.
