Property tax hike may be on the way for Salt Lake County

A property tax hike may be in store for Salt Lake County residents following a fresh round of efforts by the county council to deal with decimated tax revenues — part of the fallout of ongoing economic gloom.

Though the county's operating budget is balanced for 2009, economic projections show a looming shortfall for 2010.

The council voted 5-4 Tuesday on party lines to pay down about $5.5 million in outstanding bond debt by raising countywide property taxes this year. Retiring vestiges of voter-approved debt, including about $3.5 million from a 2006 bond for $63.5 million to pay for recreation-related projects, will likely add about $10 to the annual taxes on a $250,000 home. Salt Lake County Mayor Peter Corroon spoke against the hike at Tuesday's council meeting, but recognized later the avenues for dealing with declining revenues were dwindling.

"While I didn't support the vote, I certainly understand why they voted the way they did," Corroon said. "I don't think citizens are in the mood for a tax increase, but at the same time … we're getting closer and closer to a point where there are … fewer options."

Council Republicans sided with Corroon, who has 15 days to sign the resolution, when the issue came to a vote and advocated for taking a closer look at what cuts could be made before levying the tax hike. Republican Councilman David Wilde said he felt like the decision to move the debt payments from sales tax to property tax was a "bait and switch" move on taxpayers.

"We've been able to pay for those things through sales tax revenues and I really think that's how the bonds were sold to voters, especially the 2006 bond," Wilde said. "Taxpayers weren't expecting a property tax hike."

Before the bond was OK'd by voters in 2006, county officials told the Deseret News that taxes would not go up as the bond would be retired by funds collected via the Zoo, Arts and Parks sales tax. Democratic Council Chairman Joe Hatch countered that what was presented to voters "clearly stated" that taxes would be collected to cover the debt.

"I could not disagree with David more on this," Hatch said. "The public was informed that taxes would be collected to pay for this … and that's what voters approved."