Tax hike possible in Salt Lake County
Council is discussing levy to make up a shortfall
The County Council is considering imposing a judgment levy to make up for existing and possible future court decisions that decrease the amount of property taxes paid by big utilities, airlines and mining companies such as Kennecott.
"We're going to have to do a judgment levy somewhere down the road, and the sooner we do it the less pain there will be," Councilman Joe Hatch said.
Companies with property or operations that cross over into multiple counties are assessed for property taxes by the state, not by the counties. If a company believes its assessment is too high, appeals and wins, the expected and budgeted property tax income is reduced, leaving county government to figure out how to make up the difference.
A judgment levy is one tool for making it up. It is used regularly by cities, but to date, Salt Lake County has stayed away from levies and not all council members want to start up with them now.
"I agree (a judgment levy) is a good way to go. I just don't know if this is the time," Councilman Cortlund Ashton said.
Ashton and others prefer to keep making up the shortfall which some years can run into the millions from existing fund balances.
"Those fund balances are too high," Ashton said. "We already have way more than we need."
The county has a yearly budget of about $750 million and about $160 million in fund balances, but most of those are restricted and can't be used to make up tax judgments.
The general fund, which can be used that way, has a projected year-end fund balance of $39 million, with $18 million required to maintain its AAA bond rating. County budget director Lance Brown, however, cautioned that fund balances tend to diminish quickly without either reducing services or increasing taxes.
The council is scheduled to make a final decision today on whether to impose a levy and how large that levy would be.
The county is already facing shortfalls from centrally assessed tax judgments of about $750,000 in the general fund and about the same amount in the municipal services fund. Making up that difference in the next year would result in a $13 tax increase for residents of the unincorporated areas and $1.50 for all others.
No one knows exactly how much in decreased tax revenue the county might face in future appeals. A case pending before the Utah Supreme Court, for example, concerns whether a $5 million reduction in Magna's Alliant Techsystems' taxes can legally be carried out, which could constitute a large hit for the county.
If the county opts to impose a levy, one option would be to conduct truth-in-taxation procedures now but wait to actually impose the levy until the council revisits the budget next June.
E-mail: aedwards@desnews.com
Comments
- Sentencing for con man moved 2:33 p.m.
- Obama and pope hold first meeting 2:33 p.m.
- Priestley and wife welcome baby 2:30 p.m.
- Panel: Banks underpaying gov't 2:20 p.m.
- Stocks falter 2:19 p.m.
- CA's creditors look to options 2:08 p.m.
- Credit card pain 2:07 p.m.
- Bolster SEC's authority? 1:45 p.m.
- Oil below $60 1:42 p.m.
- Putin scene on 'South Park' cut 1:32 p.m.
- Jazz talking Boozer trade?
- Stadium of Fire flag burning was fake
- Reactions on Boozer speculation
- LDS seminary principal arrested
- Jazz in back of line for free agents
- A primer for the 6th Potter film
- Okur signs two-year extension
- Jazz won't meet Lopez on Europe trip
- Restaurant destroyed by fire
- Mall owner seeks to retain zoning
- Bronco collecting a galaxy of recruits
141 - Letters: Palin mistreated
140 - Teachers struggle with district cuts
136 - Jazz talking Boozer trade?
131 - Blazers may offer Millsap a contract
123 - Stadium of Fire flag burning was fake
86 - Fairness of BCS debated
81 - Moon landing: Let's hear from you
81 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
71
As more and more dads are put out of work in this economy, I've been...
The photographs are mysterious, brooding, dark. They show dimples and...
People are getting defensive here. The girl did not go to authorities like...
So what is it that Utah can offer California? And any other state for that...
You need to understand Mormon culture. Mormons aren't blaming Satan for the...
How easy and appropriate would it have been to announce before the flag was...
They (the Mormons) ask for it - the days are forever gone when a Mormon can...
Sorry to disappoint the friends of "mike", but nobody is so great that they...
you always make a rough draft before composing a masterpiece. haha just...
What is up with the respect for this guy? He has seen way too much playing...
The last democrat to rule the White House with a backbone was FDR. Obama to...
Now I've heard it all. Welcome to Utah - home of The Big Waters! 90% of the...


You can be the first to comment on this story.