By Nathan Barney
nathan@newsroom.byu.edu
Delta Airlines never intended to relocate their Salt Lake City hub, they only wanted to receive a tax break to make their operations in the area more profitable, officials said.
'(Delta) never threatened to leave. They said they were considering moving resources elsewhere,' said Sen. John L. Valentine, R-Orem.
Valentine, chair of the Senate Revenue and Taxation Standing Committee, said that Delta was considering moving some of its operations to other areas and all reference to Delta moving their hub has been overblown.
'They said they were trying to make a rational decision on behalf of their shareholders. They wanted to allocate their resources to areas where they could be more profitable.'
Delta said that Utah taxes nearly 50 percent of its profits while other hub cities are taxing only 10 to 15 percent.
An inquiry into Delta's claims is being made, but it is in the early stages, Valentine said.
'Nothing can happen until the study is completed and the legislature convenes next year,' Valentine said.
In 1996 Delta appealed its property taxes to the Utah State Tax Commission. An amended settlement has been reached, giving the airline a partial tax refund in the low millions, reportedly less than $10 million, Valentine said.
This agreement negotiated by the Property Tax Division must first be approved by the Utah Tax Commission, Valentine said.
Additional concern comes from Utah's unusually high jet fuel costs. Utah ranks as the fourth most expensive among the 11 Western states.
Salt Lake is Delta's third largest hub and has strong ties to the community.
Delta is an official sponsor of the 2002 Salt Lake Winter Olympic Games and was a major sponsor in the construction of the Delta Center, home of the Utah Jazz. Delta has 4,500 local employees, occupies two of the airports four terminals and has 154 scheduled daily departures.
'We have received assurances from the world of Delta that they are not pulling their hub,' said Barbara Gann, Public Relations director of the Salt Lake airport.
Valentine could not believe the attention that has been paid to this issue.
'I thought this whole Delta thing would have blown over by now,' he said.