West Haven, which doesn't tax property, opts instead for new energy tax to boost revenue

WEST HAVEN, Weber County — As many Utah cities pursue property tax hikes to help cover rising costs and new expenses, officials in West Haven are taking a different approach to generate additional revenue.

West Haven is one of just a handful across the state that doesn't assess property taxes and in a bid to keep it that way, officials instead opted to implement a 6% energy tax in preparing the city's 2026-2027 budget. West Haven, home to around 25,000 people, had also been one of just a few cities in the state without an energy sales and use tax, which is based on natural gas and energy consumption.

Unlike property taxes, which apply only to property owners, not renters, the energy tax applies to all power and natural gas customers; it's more evenly applied, said Mayor Rob Vanderwood. "We felt like that was maybe the most appropriate way to go with it," he said.

The West Haven City Council held a public hearing on the proposal last month, drawing critical comments from just one speaker, Vanderwood said, and the new tax, which received a 3-2 vote of support, will go into effect on Oct. 1. It'll cost the average household about $11 a month or $132 a year and generate an estimated $905,000 for the city in fiscal year 2026-2027 and around $1.2 million a year thereafter.

The two naysayers had proposed a 4% energy tax instead of 6%, Vanderwood said.

Property taxes generate grumbling from many homeowners and numerous locales across Utah are debating property tax hikes as part of their budgeting for 2026-2027. According to a KSL review of proposed increases in Utah's most populated counties, the proposed increases range from just 0.91% in South Weber in Davis County to 220.9% in Eagle Mountain and 506% in Ogden Valley, a newly formed city in Weber County. They will be the focus of public hearings in August before officials in the varied locales take final action.

Similar to West Haven, Weber County officials went another route instead of property taxes to boost revenue, adopting a 0.2% sales tax increase last month. The increase, to take effect Oct. 1, could generate $8 million to $12 million a year, with $2 million to $3 million of that to go to the county and the rest to be distributed to Weber County's 16 locales, including West Haven.

No property taxes in five cities

Over the years, leaders in West Haven, one of the fastest-growing cities in Weber County and the state as a whole, have debated whether to start taxing property, but have so far been able to avoid it. According to Utah Tax Commission data supplied to West Haven in 2023, just five of Utah's 255 cities that year didn't charge property taxes, including West Haven. Marriott-Slaterville, another Weber County city, also doesn't tax property.

"We don't want our residents to be overburdened with taxes, so we're trying to keep the property tax out. If we can afford to, that's what we're going to do," Vanderwood said.

Still, the city found itself needing extra funds for the fiscal year 2027, which led to the implementation of the energy tax. Among the biggest jumps in expected expenses is a $309,000 a year increase in fees to the Weber County Sheriff's Office for law enforcement protection, funding needed to boost pay in the office and hire more deputies. The city also faces increased park maintenance costs and needs more money for planned pay increases for city workers.

A new Walmart is being built in West Haven, which will bring in additional sales tax revenue. However, Vanderwood said new big box stores typically result in an uptick in police calls, which may sap much of the extra revenue the store generates. The outlet was originally to have been completed by August, but now the date has been moved to next April, according to Vanderwood.

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