From Deseret News archives:
Minor tax shift will hit Utah County property owners in '06
The county commission Tuesday approved a $192,500 property tax judgment levy to offset the Utah State Tax Commission's decision to uphold an appeal by Qwest and retroactively reduce the assessed value of the company's property for the 2001-04 tax years.
"It's not really a tax increase. It's just that the tax got shifted," Grover said.
The tax shift will cost the average Utah County homeowner $1.29 and the average business owner $2.34 — a one-time fee. Taxpayers will receive a notice of the levy separate from their 2006 property tax bill, he said.
"It's basically the tax that they would have paid in 2002 that they'll have to pay in 2006," Grover said.
The tax commission ruled in August that the state had inaccurately assessed the value of Qwest's property. As a result, the communications company overpaid property taxes to Utah County over the four-year period by $192,500. The county was required to refund that money and now is turning to taxpayers to make up the difference.
"It's one of those things that the county commission has no control over," Grover said. "We don't even set those tax valuations, so we can't even say if they were right or wrong. The state does it, the state litigates it, and if the state loses, we pay for it."
Charlie Roberts, spokesman for the Utah State Tax Commission, said businesses with centrally assessed properties — meaning they cross county lines, such as mines and utilities — often appeal their valuations to the tax commission.
Statewide, Qwest reportedly is entitled to about $13 million in refunds. Utah County Commissioner Steve White estimates that Utah County cities, school districts and special services account for $1.5 million to $1.7 million of that.
"We collect all of the taxes for all of the entities, but we only keep about 10 percent of all the taxes that come into the county," White explained. "When it's time for a judgment levy like this, we only do it for our tax unit."
White estimates the combined responsibility of Provo, Nebo and Alpine school districts is between $500,000 and $600,000.
"They've already collected the money over the last four years and spent it," he said. "That's the problem."
E-mail: jpage@desnews.com
