SL County cities, school districts propose $10M in property tax hikes

SL County cities, school districts propose $10M in property tax hikes

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SALT LAKE CITY — Several Salt Lake County cities and school districts are proposing property tax increases, and if they're all approved, residents collectively could be asked to pay roughly $10 million more in taxes.

At least 30 Utah cities and school districts — including eight in Salt Lake County — are considering property tax increases. The proposals come after the Utah Legislature passed SB97 during the 2015 session, which increased state revenue by $75 million by increasing Utah's basic property tax rate.

City and school district officials say the increases are needed to keep up — or catch up — on growing revenue demands, from inflation to needs for better student and teacher services.

But Billy Hesterman, vice president of the Utah Taxpayers Association, said taxpayers need to tell their elected officials "taxes are already high enough."

"Certainly there are needs, but at the same time, policymakers need to look at their budgets," Hesterman said. "They really need to dig down, cut out the fat, and find ways to take this burden off of the taxpayers and let the money stay in the family and in the home."

Reasons for the proposed tax hikes vary from city to city, but school districts are seeking additional revenue needed after the Legislature passed HB119.

The bill requires school districts to pay a full 25 percent of local property tax revenues to a statewide fund, providing capital resources for both district and charter schools. Prior to the bill, districts could pay the lesser of two options: 25 percent of per-pupil local revenues, or 25 percent of charter schools students' average local revenues.

District officials say the bulk of the proposed property tax increases are needed to cover that 25 percent.

SL County cities, school districts propose $10M in property tax hikes

Salt Lake City School District

The Salt Lake City School District is proposing a $1.5 million property tax increase. If approved by the school board, a majority of the funds — $900,000 — will be used to pay the full cost of local replacement funding called for by HB119, district spokesman Jason Olsen said.

The remaining $600,000 would fund a new peer assistance review program and teacher development, Olsen said.

"The two programs we're looking to expand are direct benefits to our students," he said. "But the overall majority of the need is unfortunately something we don't have a lot of control over. … If we didn't raise it through taxes, we'd have to cut it from some of our programs."

The tax hike would mean property taxes on an average home valued at $265,000 would increase by $12 per year — from $935 to $947. A commercial property at the same value would go up $22 — from $1,700 to $1,722.

The public hearing on the Salt Lake City School District tax increase is set for 7 p.m. Tuesday at the district offices, 440 E. 100 South.

Granite School District

District spokesman Ben Horsley said the Granite School Board has proposed to increase taxes by roughly $860,000. The funds will be used to make up for HB119's local replacement funding.

"We're not going to cut services to our students to provide funding to charter schools," Horsley said.

If the tax increase is approved, an average home valued at $265,000 would see property taxes increase by $26 — from $991 to $1,017. A commercial property at the same value would face an increase of $48 — from $1,802 to $1,850.

A public hearing for the Granite tax increase is set for 7 p.m. Tuesday at the district offices, 2500 S. State.

Murray School District

The Murray School Board has proposed a $605,000 increase, of which $115,000 will be used to cover local replacement funding under HB119.

Superintendent Steve Hirase said the rest will be used to restore services and positions lost during the economic downturn, including professional development days for teachers and at least seven full-time positions — one administrator, three coaches, one math lab instructor, and two counselors.

"It's important for our students to be able to receive the educational services they deserve," Hirase said.

If the increase is approved, an average home valued at $265,000 would see property taxes increase by $30 — from $1,002 to $1,032. A commercial property at the same value would face an increase of $55 — from $1,822 to $1,877.

A public hearing is set for 7 p.m. Tuesday, Aug. 11, at the district offices, 147 E. 5065 South, Murray.

Salt Lake City

Utah's capital city hopes to generate $4.7 million in additional tax revenue, but Mayor Ralph Becker's spokesman, Art Raymond, said the bulk of the revenue — $4.5 million — is a "tax stabilization," not a property tax increase.

"Salt Lake City is not seeking a tax increase this year but has, as state law requires, engaged the truth-in-taxation process for an adjustment to maintain the same revenues as it collected last year," Raymond said. "This adjustment simply balances the revenue stream to match that of the previous year."

The other $200,000 is for a judgement levy, which is a property tax adjustment to replace revenues being rebated to companies that have made local or state appeals for property value reductions.

If approved, an average home valued at $265,000 would see property taxes increase by $38 — from $780 to $818. A commercial property at the same value would see an increase of $68 — from $1,419 to $1,487.

The public hearing is set for 6 p.m. Thursday, Aug. 13, at the Salt Lake City-County Building, 451 S. State.

Sandy

Sandy is proposing a $318,000 property tax increase.

The city has not raised property taxes since 1987, but unforeseen costs from the Affordable Care Act, as well as a need to compensate for inflationary costs and sales tax lost through businesses relocating to other cities, have necessitated a tax hike, spokeswoman Nicole Martin said.

"Raising property tax is always a last resort for Sandy city, which is why we've not done it since 1987 and now have one of the lowest property tax rates in the state," Martin said. "Unfortunately, it has become necessary to ask for a modest increase if we hope to not negatively impact the service levels our residents expect and deserve."

If the hike is approved, an average home valued at $265,000 would see property taxes rise $8 — from $200 to $208. A commercial property at the same value would see an increase of $15 — from $363 to $378.

A public hearing is set for 7 p.m. Tuesday at Sandy City Hall, 10000 S. Centennial Parkway.

West Valley City

West Valley City is proposing to increase property tax collections by nearly $200,000. The city's finance director, James Welch, said the increase would make up for a judgement levy, so it wouldn't produce any new revenue for the city.

"This is a property tax adjustment to replace revenues that were rebated to businesses who protested their property tax evaluations and does not represent any operational increases," Welch said.

If the hike is approved, an average home valued at $265,000 would see property taxes rise $5 — from $607 to $612. A commercial property at the same value would see an increase of $9 — from $1,103 to $1,112.

A public hearing is set for 6:30 p.m. Tuesday, Aug. 11, at West Valley City Hall, 3600 S. Constitution Blvd.

Traverse Ridge Special Service District

The Traverse Ridge Special Service District in Draper is proposing a $165,000 increase, but it will cost the district's residents 75 percent less of what they used to pay to fund snow removal at higher elevations.

Last year, Draper residents overwhelmingly voted down a property tax add-on for those services, which critics claimed was more than the cost of the services and double what Draper residents outside of the district pay. Since the levy was removed, the district's residents have not had to foot a special service property tax bill.

"Because our tax levy was zero last year, any tax levy is going to be an increase," said the district's treasurer, Blaine Carlton. "What we've come up with is what we think is a reasonable budget, which is 75 percent lower than what Draper city had proposed a year and a half ago."

If the district's board approves the levy, an average home valued at $265,000 would see a property tax of $95. A commercial property at the same value would be $173.

A public hearing is set for 7 p.m. Tuesday at Draper City Hall, 1020 E. Pioneer Road.

Jordan Valley Water Conservancy

The Jordan Valley Water Conservancy District is proposing a property tax increase of $655,000.

Richard Bay, the district's general manager, said the hike is a part of a 10-year financial plan to keep up with population growth and demand.

"It's been eight years since we last adjusted the (tax)," Bay said, "and this year, to keep with our long-term plan, is the time to adjust it once again."

The district's two most recent projects are the Central and Strawberry water projects, which will cost $126 million, he said.

If the district board approves the increase, an average home valued at $265,000 would see property taxes rise $3 — from $55 to $58. A commercial property at the same value would see an increase of $6 — from $100 to $106.

A public hearing is set for 6 p.m. Wednesday, Aug. 12, at the district offices, 8215 S. 1300 West, West Jordan.

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