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Mayor warns Box Elder residents about potential revenue impacts of IM 28
Summary
Mayor Larry Larson told council members the proposed measure (referred to in the transcript as 'I am 28') would repeal the 4.2% sales tax on groceries if passed, and could sharply reduce city revenue that funds public safety and public works; the city attorney is consulting with peers and the city will push messaging to residents.
Mayor Larry Larson used his report to raise concerns about a ballot initiative he referred to as 'IM 28' (the transcript rendered it as "I am 28") and its possible effect on local finances.
Larson said that, if the measure passes, it would repeal a 4.2% sales tax on groceries and could substantially reduce the city’s tax base. He told the council that Box Elder relies on a combination of property tax and sales tax revenue to fund public safety and public works and that losing the sales-tax portion would create a difficult budget gap. “If that was to pass, it would repeal the 4.2% sales tax on groceries,” Larson said. He added the city attorney is consulting with state colleagues about legal interpretations and that the city is preparing public messaging to inform residents of potential implications.
Council did not take formal action on the matter at the meeting; Larson said staff and the attorney would continue to evaluate legal questions and options and would bring further information to the council as needed.
