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OJIJH their taxes in advance. In its 1975 General Session, the Utah State Legislature passed a Resource Development Act (S.B. No. 256) to allow just that. Any natural resource development company may prepay the State (but not local) sales tax which it might expect to pay during construction or operation. The money collected is spent by the State on State- related public improvements in the areas of impact. The State Road Commission may spend its money on State highways in the area of the energy project, or make special grants to the county of the project for county roads. The State Board of Education must give its money to school districts in which the energy projects are located. The company operating the coal mine for the Kaiparowits electric generating plant in Kane County is about to make a $48 million prepayment of its State sales tax. It should be noted that serious con- cerns have been expressed by energy companies and legal experts about the problems created in company financing and Federal taxes with any prepayment of State or local taxes. Contact: Secretary of State, 203 State Capitol Building, Salt Lake City. Utah 84114. IB01l 533.5151 Water Systems from Liquor Taxes: State of Utah One of the big needs for community capital spend. ing is for water systems. While often the systems will pay for themselves in the long-run, very small com. munities have trouble getting the construction money. Debt limitations are very low compared to the total need, and bond buyers don't give high credit ratings. The State of Utah has appropriated $2 million from liquor control profits to be used for grants to munici- palities and improvement districts for water systems. The program is run by the State Board of Water Re- sources, which may grant money for new systems or upgrading existing ones. The grant may be for all or part of the total cost. This program provides money to communities by buying their bonds. As the money is repaid, the pro- gram will become a revolving fund. The first among el~ven criteria used in setting priorities is: "Probable growth of population due to actual or prospective economic development in an area." One of the first big projects is the provision of $500,000 (out of a total of $3.1 million) for the Price River Water Improvement District in Carbon County. Five cities in Emory County, impacted by coal mining, are getting a total of $678,000 in aid this year. Refer to: S.B. No. 110, 1975 General Session "Grants for Municipal and Improvement District Water Systems." Contact: Director, State Department of Water Re- sources, 435 State Capitol Building, Salt Lake City, Utah 84114. IB01l533.5401 [ 34