Initiative 1 poses tax jump
Those who store and dispose of nuclear waste in Utah will pay higher taxes if Initiative 1 is passed on Nov. 5.
The Citizen’s State Initiative No. 1 will change the way businesses, like Envirocare, pay taxes on the waste collected and disposed of at their facilities in Utah. The initiative will increase the annual fee paid to maintain the storage facilities from $400,000 to a minimum of $5 million.
This initiative has been a hot topic in public debates around the state. U.S. Congressional candidates have faced questions this month about their stand on Initiative 1. Utah House of Representatives candidates have debated the issue. Even county commission candidates in various parts of the state have been asked to express their opinions in public forums. Editorials have run in all of the major newspapers, as well. Because of the volatile budget situation, anything having to do with taxes and increasing money given to the state has become a largely debated theme.
The initiative prohibits any further storage or disposal of class B or C low-level radioactive waste or high-level radioactive waste of any class. The amount of radiation emitted from a trainload of class A radioactive waste over a three-day period is comparable to the amount of radiation received with a chest X-ray. Class A is the lowest class of radioactive waste. Classes B and C are more toxic in nature.
The 2002 Voter Information Pamphlet, provided by the state to help voters make educated decisions, has arguments for and against Initiative 1 and the six state constitutional amendments that will be on the ballot. The pamphlet is available at any public library.
Former Sen. Jake Garn, former Gov. Calvin Rampton and businessman Jack Gallivan wrote the arguments supporting Initiative 1, which were published in the pamphlet. They wrote that the initiative will help fund Utah’s public school system and impose a realistic tax on out-of-state radioactive waste.
Hugh Matheson, attorney for Utahns Against Unfair Taxes, said the initiative, if passed, will put Envirocare out of business. The state will not only lose the potential tax revenues but the current ones, as well, he said.
Hundreds of thousands of dollars are being spent on advertising by people on both sides of the issue, Matheson said. Television and radio commercials will be aired throughout the next few weeks. People in Utah have begun to receive mailings that were sent out last week by Utahns Against Unfair Taxes.
If the initiative passes and Envirocare can pay the taxes, Utah students are in a position where they could gain millions of dollars each year. If the initiative passes and Envirocare is forced to go out of business, nearly 400 people could lose their jobs, and Utah will lose out on the revenue they have received to this point. If the initiative does not pass, tax revenues will remain static and the same low-level nuclear waste will continue to come into Utah.
According to the pamphlet, Constitutional Amendment No. 1 was designed to eliminate the unnecessary reallocation of money into an already sufficiently backed fund. As currently required, all interest accrued on the permanent $213 million State School Fund that is equal to the rate of inflation will be put back into this same fund. Any interest earned beyond the rate of inflation is what is used for public education.
Amendment 1 will eliminate this requirement. All interest will be given directly to public education, regardless of inflation rates.
The example given in the Utah Voter Information Pamphlet shows that $5.7 million could have been available to the public schools in 2000 had this amendment been in effect. This amendment passed unanimously in the House of Representatives and the Senate. Ratification of this amendment is now in the hands of voters.
-jonryan@cc.usu.edu