Multiple Utah entities propose $93 million in property tax hikes. Here are the largest proposals
Utah property taxes in dozens of municipalities are set to go up as local entities together seek to collect over $93.5 million more in revenue this year, the Utah Taxpayers Association found.
According to the watchdog, out of the 67 taxing entities that are proposing increases this year, three make up for the largest proposals — Granite School District, Salt Lake City and Cache County School District. Together, these tax proposals account for nearly 47% of the increases planned for this year throughout the state
However, the proposals aren’t final, the association said in a news release on Monday. The tax increase process includes truth-in-taxation hearings, in which taxpayers have the chance to comment before elected officials make their taxing decisions.
“Property-tax increases should never happen on autopilot,” Billy Hesterman, president of the Utah Taxpayers Association, said in the release. “Truth-in-Taxation hearings give taxpayers a chance to ask why more revenue is needed, how the money will be spent and whether elected officials considered alternatives. We strongly encourage Utahns to attend and make their voices heard.”
The Granite School District, which serves different cities across Salt Lake County, is hoping to feed its budget with $21.1 million in new revenue, the Utah Taxpayers Association said. That would add about $125 to the annual tax bill of the average home in the area, valued at $570,000. The hearing for this proposal will be held on Aug. 18 at 6 p.m. at the school district’s headquarters, 2500 S. State Street in Salt Lake City.
The school district’s proposed tax rate last year was not approved by the Utah State Tax Commission, so the district is seeking additional revenue to cover ongoing expenses that remain unfunded, according to its website.
“The rate for the State Basic School Levy is set each year by the State Legislature in the legislative session held between January and March. Granite School District has no control over this property tax rate and must levy the tax in order to receive Minimum Basic School Program funding from the State each year,” the district’s website says.
The second-largest proposal was made by the most populous city in the state, Salt Lake City. Utah’s capital is proposing growing its revenue by $13.8 million. That would mean an approximate increase of $102 for the owners of an average $703,000 home annually. The hearing for the city’s tax proposal will be on Aug. 11 at 7 p.m. at Salt Lake City Hall, 451 S. State Street, room 315.
During her budget presentation, Salt Lake City Mayor Erin Mendenhall said that before her office considered a tax increase, it cut $13.2 million through an efficiency exercise in all city departments. The city also saved $6 million by keeping some staff roles vacant for a time, or choosing not to rehire for those positions.
“We did not arrive at this proposal quickly or casually. We exhausted every other option before proposing increases to property taxes and fees,” Mendenhall said. What remains after this are choices none of us want to make: laying off dozens of City employees, cutting services Salt Lakers depend upon, or delaying infrastructure we’ll need for the next 20 years.”
The Cache County School District, which is proposing a budget with $8.6 million of new revenue, is the third-largest tax increase proposal in the state this year, according to the association. If approved, the new tax would add about $210 to the annual tax bill of an average $549,000 home. The truth-in-taxation hearing for this proposal is Aug. 6 at 6 p.m. at the Cache County Board of Education office, 2035 N. 1200 East in North Logan.
The district said on its website that it already has the third-lowest administrative spending in the state, and that its staff combed through every budget line to find any potential excess. While some changes were made, the district said the increase is needed.
“Every penny of the $8,610,926 raised by this adjustment is being put to work immediately. It directly preserves the jobs of our 3,500 dedicated teachers and staff members. It also helps to fully fund approximately 109 new essential personnel, including counselors, custodians, and instructional specialists. Plus, we’re adding three new school buses to handle the new routes,” district officials wrote.
Utah Taxpayers Association leaders said they are particularly concerned about the number of Utah tax entities holding repeated truth-in-taxation meetings because they’re coming back multiple times looking to raise taxes. Eleven are doing so for the fourth consecutive year and another nine are proposing tax increases for a third consecutive year.
“A Truth-in-Taxation hearing is supposed to provide transparency and accountability when a government wants to collect more property-tax revenue,” Hesterman said. “When an entity returns for a third or fourth consecutive year, taxpayers deserve an especially clear explanation. Government should not need to ask residents for additional revenue year after year without presenting a credible long-term plan to control spending.”
More details of all tax increase proposals identified by the Utah Tax Association can be found on the attached list.
- 11:30 amThis story has been updated with additional details about the three largest proposed property tax increases.