CACHE COUNTY – Under Utah’s Truth-in-Taxation law, seven of Cache County’s 19 municipalities will be holding public hearings in August to justify proposed property tax increases for next year.
Those communities are Clarkston, Hyde Park, Lewiston, Millville, Nibley, Richmond and Wellsville, according to a public notice recently issued by Diana Schaeffer, Cache County’s chief deputy auditor.
While the state Truth-in-Taxation statute does not technically limit property taxes, it does require local officials to notify their citizens of proposed property tax increases and hold announced forums to hear public responses.
Here in Cache County, those public hearings for proposed 2022 tax hikes are scheduled for 7 p.m. on Aug. 18 in Clarkston; 7 p.m. on Aug. 25 in Hyde Park; 7:30 p.m. on Aug. 19 in Lewiston; 7:15 p.m. on Aug. 12 in Millville; 6:30 p.m. on Aug. 26 in Nibley; 8 p.m. on Aug. 17 in Richmond; and 6:10 p.m. on Aug. 3 in Wellsville.
Utah’s Truth-in-Taxation law is revenue-driven rather than a rate-driven system, according to the Utah Taxpayers Association.
As the value of existing property increases to keep pace with residential and commercial markets, property tax rates generally decrease.
Such automatic reductions in property tax rates keep local governments from getting a revenue windfall simply because the value of existing properties within their boundaries have increased.
Those reduced property tax rates are known as the certified tax rates. Thanks to the Truth-in-Taxation law, local governments must go through its mandated notification and hearing process if they want to exceed the certified tax rate for their residential and commercial properties.
While the Utah Taxpayers Association played an instrumental role in the enactment of the Truth-in-Taxation law in 1985, its leaders have stated publicly that they do not oppose every proposed tax hike over the certified tax rate. In some cases, they explain, local governments are simply trying to recoup inflationary losses.
On the Cache County website, the Auditor’s Office has translated the proposed local municipal tax increases into dollar and cents terms.
The proposed hike by Clarkston officials, for example, would raise the annual taxes on the average property worth $257,000 by $44.80 for a residential property and $81.47 for a commercial property.
In Hyde Park, the proposed increase would raise property taxes on the average property worth $414,000 by $33.24 for a residential property and $60.44 for a commercial property.
The proposed property tax hike in Lewiston would raise the yearly taxes on the average property worth $285,000 by $47.96 for a residential property and $87.21 for a commercial property.
The tax hike proposed by officials in Millville would raise the annual taxes on the average property worth $385,000 by $21.18 for a residential property and $38.50 for a commercial property.
In Nibley, the proposed hike would raise the yearly taxes on the average property worth $353,000 by $35.53 for a residential property and $64.60 for a commercial property.
The proposed tax increase in Richmond would raise the yearly taxes on the average property worth $339,000 by $56.12 for a residential property and $102.04 for a commercial property.
Finally, in Wellsville, the proposed tax increase would raise the yearly taxes on the average property worth $366,000 by $22.57 for a residential property and $50.14 for a commercial property.
The locations for tax increase public hearings slated in August are 50 S. Main St. in Clarkston; 113 E. Center St. in Hyde Park; 29 S. Main St. in Lewiston; 510 East, 300 South in Millville; 455 West, 3200 South in Nibley; 90 South, 100 West in Richmond; and 75 E. Main St. in Wellsville.