S.L. County Council moves to replace police fee with property tax

SALT LAKE CITY — The Salt Lake County Council will replace the politically unpopular police fee with a property tax levy specifically for law enforcement.

In a unanimous decision, the council voted Tuesday to replace the fee levied by the Salt Lake Valley Law Enforcement Service Area with a property tax levy. In doing so, the council would eliminate the municipal services tax levy and transfer it to the law enforcement service area. The county would then pay for public works projects and maintenance solely through sales tax revenue.

Salt Lake County Sheriff Jim Winder said the vote was "a very courageous move on the part of a bipartisan council."

"It's a recognition they're giving the citizens direct control over a vital service. It's huge," Winder said.

The county had to come up with a new revenue stream for the law enforcement authority after the Utah Legislature passed a bill that eliminated the ability for the service area to levy the so-called police fee after Dec. 31, 2012. The fee provides about 55 percent of the revenue for the service area.

If the funding shift is approved during the budgeting process later this year, an average homeowner will pay less in property tax to pay for law enforcement than they did in police fees, according to SLVLESA documents.

The owner of a $220,000 home would pay $70 less per year in property tax compared to what they are assessed by the fee, assuming they deduct property taxes from their federal and state income taxes.

However, homes valued at more than $390,000 will pay more in property tax than they would have paid in fees. For instance, a home valued at $500,000 would pay about $45 more per year.

Kennecott, the county's largest taxpayer — and one of the staunchest critics of the police fee — will pay about $4.3 million to SLVLESA for law enforcement under current assessments. That's nearly triple what it paid under the police fee. Still, Kennecott officials said they supported the change.

"We support the tax over the fee even though we know we will pay more. We knew we would pay more under a tax than fee but it is the appropriate method and a much more open process. Through the taxation system, the public and corporations can be involved in the process, it's discussed publicly and goes through a required process," said Kennecott spokeswoman Jana Kettering.

Meanwhile, churches, hospitals and other nonprofit organizations exempt from property taxes will no longer pay for law enforcement in unincorporated Salt Lake County.