Tax commission lowers high rates

The Utah Tax Commission giveth and the Utah Tax Commission taketh away.

Misinterpretation of an amended state law regarding the calculation of property tax rates caused the commission to send Utah's 29 counties artificially high rates. It meant as much as a $70 million windfall to local taxing entities statewide, according to one tax watchdog group.

The state's more than 600 taxing entities, including cities, counties and school districts, could have essentially raised property taxes without public hearings.

But the tax commission recalculated the complex formula this week after several counties and the Utah Taxpayers Association questioned the inflated numbers.

"It just means, 'Whoops, we have a new set of certified tax rates for your entity that aren't artificially high,' " said Larry Newton, director of finance and statistics for the State Office of Education.

It also means many cities that adopted annual budgets using the inflated rate to meet a state-mandated deadline will have to reconsider their budgets or hold truth-in-taxation hearings if they opt to stay with the original rate.