Measure takes aim at property-tax hikes
SB29, sponsored by Utah Sen. Wayne Niederhauser, R-Sandy, takes aim at large property-tax increases by requiring taxing entities to hold an election if the increase is above the rate of inflation.
Currently, Utah's truth-in-taxation law allows taxing entities to get the same amount of property-tax revenue as the previous year, plus new revenue from new properties.
If an entity wants more money, it first has to hold a public hearing.
But Niederhauser said it's rare for a significant number of residents to show up to public hearings to make the voice of the people heard.
Many times, people may not see public hearing notices in the newspaper or understand what they are for and, therefore, not bother to attend.
In late 2006, no one from the public attended a public hearing in which the Davis Mosquito Abatement District's board voted in a small property-tax increase. It was the same story with the Jordan Valley Water Conservancy District's board, which held a public hearing in June 2007 to decide on a 35.6 percent tax increase.
One person showed up, but it turned out he was at the wrong meeting, said Jordan Valley general manager Richard Bay.
Niederhauser said residents don't get bent out of shape by smaller and more regular tax increases that follow inflation because most people understand that the cost of services increases each year.
Residents do get upset with the larger and more rare tax increases that take a sudden, sizable bite out of their wallets.
About 80 residents showed up to a public hearing in December 2006 when Davis County commissioners were deciding on a 37 percent tax increase on the average home. Most of those who addressed commissioners voiced disapproval of the tax increase, but a week later, commissioners approved the increase because services that the increase funded — jail operations, flood control upgrades and Aging Services upgrades — were at a critical juncture.
The following August, after using that tax revenue for seven months, commissioners were required to hold another public hearing and got an earful from many of the 300 residents who showed up to complain that their taxes were too high.
"Spikes in tax revenues are unacceptable," Niederhauser said.
So his bill proposes that if an entity sees a need to raise taxes above the rate of inflation, the entity must hold an election.
"We need to have more people weighing in on it," Niederhauser said.
The election would be scheduled in November because more people turn out to vote than in the June elections.
Recent comments
truth in taxation in this state .. is a LIE !! there is NO truth...
randy | Jan. 21, 2008 at 10:25 a.m.
Right on! Bob G. Now if only our legislators have the guts to stand...
Minor Machman | Jan. 21, 2008 at 8:25 a.m.
These tax increases come in more than one shape. Taxation and valutation...
Bob G | Jan. 21, 2008 at 5:48 a.m.
