Wasatch County School Board Meeting

Last Thursday, the Wasatch County School District held a “Truth in Taxation” hearing. The School Board increased the property tax revenue from $14,103,497 to $21,061,610, increasing the property tax revenue by 49.34%. The School Board attributed much of the increase in taxes to the increase in property values that has taken place over the last year in Wasatch County. The Board stated that $4 million of the budgeted increase came from the increase in property value and therefore beyond the Board’s control. The Board took credit for only 3 million dollars of the increase in revenue due to their increase in the tax rate. However, this cannot be accurate under the current “Truth in Taxation” laws. “Truth in Taxation” is designed to give the School Board the same property tax revenue every year except for revenue generated from new growth. As property values increase, the tax rate under “Truth in Taxation” will decrease so that the same revenue from tax is produced. Simply put, an increase in property value equals a decrease in the tax rate. For the $4 million increase to be beyond the School Board’s control, it must have come from new growth. The tax on a $305,141.00 residence is $1060.67 per year. For the tax revenue to increase $4 million due to new growth, 3,771 new homes valued at $305,141.00 for a combined value of $1,150,686,711 would have to have been built last year in Wasatch County. However, the Board presented no numbers with regard to new growth in Wasatch County. The increased tax revenue was not beyond the Board’s control but was a direct result of Board action. Let the blame lie with the Board for this increase in property tax for it did not come from the increase in property value. Next time, please give us more “truth” and less “taxation.” If you would like to know more about “Truth in Taxation” please visit http://propertytax.utah.gov/about/truth.html.