Avoid harmful tax fixes

Published: Tuesday, Nov. 27, 2007 12:26 a.m. MST
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Of the many property-tax reforms that seem to be flooding the state Capitol these days, only a few deserve much consideration. The truth is, very little about Utah's current property-tax system needs fixing.

One idea under consideration would require counties to reassess all properties within the county each year. Frankly, if this had been in place years ago, the problems encountered statewide this year, as property values rose much faster than normal, would have been avoided.

Salt Lake County already reassesses all properties each year. This year, 7,537 property owners contested their assessments in formal appeals. That represents a meager 2.28 percent of the total parcels countywide and was a slight increase over the 1.67 percent who appealed in 2006. Neither level is indicative of a major problem that needs correcting.

Another reasonable idea under consideration would extend discounts to the elderly. But this should be available only to those of meager means. Current law already provides relief in those cases. In fact, nobody seems capable of pointing to a single instance in Utah of a low-income homeowner losing a house to the tax collector.

The list of harmful bills under consideration is too long to mention in detail. The worst of these would require a public vote every time local governments wish to raise taxes beyond the certified rate. Given that so few people bother to respond to public notices today as to when public hearings will be held for the purpose of considering a tax increase, what evidence is there that requiring a public vote would increase public involvement or lead to better government? If anything, such a requirement would bog down local governments and keep them from enacting the occasional legitimate tax increase.

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Another proposal would assess properties on a rolling five-year average, rather than on their estimated value each year. This supposedly would prevent the spikes experienced this year. In fact, those spikes are best handled by requiring yearly assessments, as Salt Lake County currently provides.

The problem isn't so much that property values fluctuate year to year. State law already requires that tax rates be adjusted up or down to ensure a local government does not collect more money one year than another. The problem is that some counties assess homes only once in several years.

The state's truth-in-taxation law has managed to keep a rein on taxes through the years. Our advice to lawmakers is to require yearly assessments, then put all the other ideas on hold for a year. Given current real estate conditions, chances are the need for quick fixes will disappear by then.

Recent comments

Thanks, Deseret News, for being a keen observer of so many proposals...

June | Nov. 27, 2007 at 8:33 p.m.

is the sheer amount of money taken by taxes. When they boost taxes...

The most important thing to fix | Nov. 27, 2007 at 8:16 p.m.

Your editorial is wrong. Most of what govrnment does is wasteful...

Richard Sherlock | Nov. 27, 2007 at 3:32 p.m.