May 8, 2000
Is Delta Airlines nearing it's final departure in Salt Lake City?
The company says taxes may force it to take off for good from its Utah hub.
Delta Airlines claims it's being taxed to death here in the state of Utah.
From higher fuel costs to property taxes, the airline says it's profit margin is paying the price.
News specialist Jill Atwood reports from Salt Lake International Airport.
Delta's worried about its bottom line, and it looks like in order to keep the hub here the airline's going to need some tax breaks from the state of Utah--a state not typically known for tax give-aways.
Utah's huge tax burden, no doubt putting a burden on Delta's bottom line. So much so, the airline's hinting at moving it's western hub elsewhere.
Danny Quillen/Delta Airlines Spokesman: "WE LOOK AT OPTIONS ALL THE TIME AND WE FOR SURE WORK ON THE TAXES. UTAH IS CERTAINLY NOT A TAX FRIENDLY STATE FOR AIRLINES. WE'RE CONSTANTLY LOOKING TO SEE WHAT WE CAN DO."
The news doesn't come as a surprise to Greg Freede, Vice President of the Utah Taxpayers Association. He says Delta's not the only big corporation with complaints throughout the state.
Greg Freede/Utah Taxpayers Association: "WE NEED AS A STATE TO REVIEW CAREFULLY OUR TAX POLICY, PERHAPS PROVIDING ADDITIONAL EXEMPTIONS AVAILABLE TO THESE HIGH QUALITY BUSINESSES SO THEY'LL REMAIN IN THE STATE OF UTAH."
Right now Utah's tax burden ranks 15th heaviest overall in the nation.
Consequently, Delta claims 50 percent of it's net profit is going to state and local government.
Ultimately, it's up to lawmakers on Capitol Hill to provide the airline with some tax relief, knowing full well our state can ill afford to watch Delta fly away.
Sen. John Valentine/(R)Orem: "OBVIOUSLY DELTA IS A MAJOR PLAYER AND A GOOD CORPORATE CITIZEN THAT NEEDS TO BE KEPT. WE'RE CONCERNED ON WHERE THIS IS GOING TO LEAD US."
And in doing some research, Senator Valentine says yes in fact Delta is paying out half their profits to taxes.
He agrees something has to change, and no doubt the issue will be brought up in the 2001 legislative session.
