Weber County judge issues preliminary order allowing Ogden Valley to pursue 506% tax hike

OGDEN — A judge is allowing Ogden Valley officials to pursue a large property tax hike, for now, pending resolution of the legal tussle over the issue.

Ogden Valley officials sued the Utah State Tax Commission in early June, arguing state law on the matter supersedes the administrative regulations tax officials cited in advising city leaders last May they couldn't seek a tax increase. Judge Catherine Conklin, the Ogden judge overseeing the matter, issued a temporary restraining order in the case last week, essentially allowing the city to take the preliminary steps required to seek a tax hike ahead of a definitive resolution.

One of the next "critical dates" in the process will be on Thursday, when Conklin holds a hearing on the matter, said Kay Hoogland, a member of the Ogden Valley City Council. "At that hearing, the court will consider whether to make the (temporary restraining order) a preliminary injunction, pending a final decision on the merits," she said.

Tax commission officials haven't commented because the case is still ongoing.

The issue is of vital importance to Ogden Valley, a new city that's mulling a massive 506% tax hike to help it keep afloat as it takes baby steps as Weber County's newest locale. The large increase, which would boost property revenues from around $500,000 to nearly $3 million, is needed for fiscal year 2026-2027 to offset lower-than-expected revenues.

At issue is the city's certificate of incorporation, issued by the Utah Lieutenant Governor's Office on Jan. 2, a day past a deadline outlined in tax commission guidelines. Because of the missed deadline, the tax commission on May 29 denied city officials' request to be recognized as a taxing entity for 2026, which would have allowed it to pursue a tax hike. The city, however, argues that state law governing taxation by Utah cities should hold sway, which would allow officials to pursue the increase.

"The court found the city has shown a substantial likelihood of prevailing on its argument that no state statute imposes a complete annual forfeiture of tax participation, and that an administrative rule cannot impose restrictions beyond what state law allows," Hoogland said.

The missed deadline occurred, city officials say, despite their requests to Utah Lieutenant Governor's Office officials to issue the needed certificate of incorporation by Dec. 29, 2025, ahead of the Jan. 1 deadline. A document inadvertently filed last December by city officials without a required signature figured in the delay.

"The city repeatedly requested issuance before Jan. 1, 2026, and urgently advised that later issuance would jeopardize its ability to secure needed property taxes in 2026," reads Ogden Valley's lawsuit. "Had the certificate of incorporation been issued on Dec. 29, 2025, as requested, the city would have had sufficient time to record the certificate and plat before Jan. 1, 2026."

The 506% tax hike if ultimately implemented would boost taxes on a home valued at $1.22 million, the average, from $106.90 to $647.43 a year.

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