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SALT LAKE CITY — As public hearings start unfolding on the many property tax hikes proposed around Utah, the city of Moab and four school districts are proposing the largest property tax hikes for 2024-2025.
Moab sits alone atop the list, with plans — approved by the Moab City Council on Tuesday — to collect property taxes for the the first time since 1991. The new proposed tax for the owner of a home worth $519,000, which is average in the city, would go from nothing to $613.43. Overall, the tax — the focus of a public hearing prior to Tuesday's action — will generate an estimated $3 million a year, to be used to maintain city roads, buildings and other infrastructure, according to the city.
"We need to fix everything. We can't continue to put Band-Aids on it," Mayor Joette Langianese said at the meeting, which drew a big crowd.
Here are the entities with the largest proposed hikes in dollar terms, pulling from data supplied by the varied taxing entities and a rundown of the tax hike proposals prepared by the Utah Taxpayers Association:
- Tooele County School District is proposing a hike that would boost taxes on a home worth $460,000, the average value, by $253.50, or 11.2%, to $2,518.87.
- Piute County School District is proposing a hike that would boost taxes on a home worth $203,000 by $247.19, or 70.4%, to $598.22. Part of that increase would be offset by a reduction in debt service costs, school officials say.
- Alpine School District is proposing a hike that would raise taxes on a home worth $489,000 by $188.27, 12.2%, to $1,725.31. Part of the increase, though, would be offset by a reduction in the district's debt service levy.
- Iron County School is proposing a hike that would increase taxes on a home worth $418,000 by $171.97, 18.7%, to $1,089.73. The district says bills under the change would still be on par with taxes for 2023-2024 due to a proposed reduction in the district's debt service levy.
School districts typically collect more property taxes than cities, counties and other taxing entities, around 56% of all property taxes collected around the state each year, estimates Malah Armstrong, of the Utah Taxpayers Association. Thus, when they implement hikes, the amount of dollars increased can be larger than other entities' hikes, even if the percentage increase is smaller, creating a misimpression of out-of-control spending.
A better gauge of hefty tax hikes is percentage increase, she said; and the following are the top five by that measure, excluding Moab:
- The Metropolitan Water District of Salt Lake is proposing a hike property hike of 89.2%, which would boost taxes on a $624,000 home in the city by $56.63 to $120.12.
- The Metropolitan Water District of Sandy is proposing a property tax hike of 72.4%, which would boost taxes on a $682,000 home in the city by $55.14 to $131.29.
- The Piute County School District is proposing the 70.4% hike, as cited above.
- The Cache County town of Clarkston is proposing a property tax hike of 63.6%, which would boost taxes on a home worth $429,000 by $121.99 to $313.81.
- The Box Elder County town of Deweyville is proposing a property tax hike of 50.1%, increasing taxes on a $469,000 home by $57.01 to $170.76.
Another cause of concern for the Utah Taxpayers Association — a watchdog organization that promotes "economical government and fair and equitable taxation" — is when entities increase taxes year after year. On that count, Armstrong noted the Central Utah Water Conservation District is proposing a tax increase for the eighth straight year, this time a 5.3% increase that would boost taxes on a home worth $510,000 by $5.61 to $112.20.
Armstrong also noted the case of Alpine School District in northern Utah County, proposing a tax increase for the sixth time in 10 years.
Taxing entities are limited by state law in how much they can boost property tax collections each year. But they may increase taxes beyond those limits if they first hold hearings to let the public sound off and follow other steps, the circumstances of the varied school districts, cities and other entities listed here.
A few more details
Here's more information on some of the proposed tax hikes outlined above:
Moab: The vast majority of Utah cities levy property taxes, which has made Moab — reliant on sales and use taxes — an anomaly. Lacking property tax revenue, Langianese said Tuesday, the city faces an "ever-increasing backlog" of needed infrastructure upgrades to roads, sidewalks, city buildings, parks and more.
Tooele County School District: The proposed increase, said district spokesman Brett Valdez, is meant to help offset the loss of some $50 million in state funding in the 2023-24 school year after the district ended its involvement in an online schooling program. The district implemented spending cuts after the reduction, which has led to increased class sizes, reduced professional development opportunities for teachers and delays or cancellations of capital improvement projects, among other things.
"While we will feel the effects of losing $50 million for a few years, the proposed increase will help us address some of those gaps and enable us to remain competitive in retaining and attracting essential staff for our schools and students," Valdez said.
The proposed increase would generate an extra $7.8 million in property tax revenue, and a hearing on the proposal is set for Aug. 27 at 6 p.m. at district headquarters in Tooele. "We are dedicated to making thoughtful decisions that respect our taxpayers while ensuring our students and educators have the resources they need to thrive," Tooele School Board PresidentMelissa Rich said in a statement.
Piute County School District: The proposed increase is meant, in part, to help generate revenue to cover the cost of replacing two elementary schools. The district is to get some $18 million in grant funding from the state for the projects but must boost taxes as part of the arrangement to help cover bonding costs for the upgrades, the spur being the tax hike proposal, according to an informational flyer on the plans.
The flyer also notes that as part of the financing plans, a debt service levy will be eliminated, resulting in a net increase in property taxes on a home worth $203,000 of around $146. The $247.19 increase figure doesn't factor tax savings brought on by axing of the debt service fund.
The Piute school district tax hearing was planned for Wednesday at 6 p.m. at the Piute High School auditorium.
Alpine School District: The increase in taxes paid by Alpine School District property owners per the proposed hike would be partially offset by a reduction in the school system's debt service tax levy, one of several elements used to determine the overall tax rate, according to Jason Sundberg, the district's business administrator.
The new revenue generated, he said, would go into a building fund and could potentially be tapped to help build a new high school. The Alpine school district hearing is set for Aug. 13 at 6 p.m. at the district offices in American Fork.
The Metropolitan Water District of Salt Lake and Sandy: The district says the proposed tax hike affecting Salt Lake City and Sandy stems from needed upgrades and would be the first in 15 years for the entity.
"Effective management of water sales and assessment revenues has enabled (the water district) to support the cost of doing business without having to increase property taxes. Yet, escalating costs resulting from the need to upgrade or replace vital infrastructure are beyond what can be generated from water sales," the entity wrote in an online flyer explaining the proposal.
The tax hike proposal will be the focus of a hearing on Aug. 12 at 6 p.m. at the district's administrative offices in Cottonwood Heights.
