Utah's property-tax system isn't broken
We understand why so many people in Utah are upset by property taxes this year. Few periods in history have been as outlandish as the last couple of years in terms of real estate inflation. For a few Utahns, this has translated into huge increases in their property tax bills, even though their local governments have not officially imposed tax increases.
But the truth is, Utah already has a strict and fair system of keeping a lid on property tax rates. If anything, a few counties need to tweak the way they assess properties, nothing more.
Utah's "truth-in taxation" law forbids local governments and that includes school districts, special-improvement districts and any other local government that levies property taxes from receiving more overall revenue from one year to the next. They are given an allowance for growth within their boundaries, but nothing more. To obtain more money, governments must declare a tax increase, then hold public hearings that receive plenty of notice in local newspapers. There can be no surprises.
In theory, this means that when inflation takes over in the real estate market, the government must reduce tax rates to compensate for the increase in home values. The trouble is, not all neighborhoods within a county, city or school district experience inflation at the same rate. Home prices in one end of town may jump at a much faster rate than in another. The evening-out process isn't always so even.
In addition, some counties, such as Davis County, still reassess property a piece at a time. This year, for example, the county reassessed the Bountiful area for the first time in about a decade. That resulted in a huge one-time increase for those residents.
Salt Lake County long ago began reassessing all properties yearly, which prevents those kinds of spikes. Davis is planning to do the same, beginning next year. All counties ought to follow suit.
The problem, then, is procedural, not systemic.
And yet some lawmakers already have donned their figurative capes and poised themselves to swoop in and save the day. One has proposed voter approval for any property increases above the rate of inflation. That is a curious idea, considering local governments currently are prohibited from raising rates to account for inflation. Given the truth-in-taxation requirements, such a bill would change absolutely nothing at all. Some individual property owners would see yearly increases while others would not.
Others have proposed making taxes dependent on the actual price at which a property sold, not on its current market value. This would create huge inequities among taxpayers.
The current system already allows people to challenge their tax assessments, and many people do so successfully. It also provides protections for the elderly and indigent. No one will lose a house to the tax man.
Clearly, some lawmakers need to educate themselves about Utah's tax system before they heed the urge to champion solutions for which there are no problems.
Recent comments
My taxes were increased at least 50% this year in Moab, UT. This is...
Lawrence | Oct. 30, 2008 at 9:34 a.m.
The systme is broken because a person can never "live off the land"....
Anonymous | Sept. 23, 2007 at 8:41 p.m.
Back in Utah is exactly right...
It is foolish to allow someone to...
slcdo | Sept. 23, 2007 at 8:34 p.m.
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