Angry taxpayers can be scary: 1 of every 4 Utah governments seeking property tax hikes backed down, at least partially

Want to scare a politician for Halloween? Try dressing up as an upset taxpayer, perhaps carrying a pitchfork or torch.

After required Truth in Taxation hearings this year that allowed protests by angry taxpayers, about one of every four cities, counties or other local governments that had proposed property tax hikes reduced them or scrapped them all together.

It is further evidence — according even to supporters of the Truth in Taxation law — that it works maybe too well to keep taxes low, spooking politicians into avoiding tax hikes that may be justified. And when increases finally do come, they tend to be large to make up for years of skipping them.

This year, 12 of the 53 local governments that had proposed tax hikes trimmed or eliminated them after their required Truth in Taxation hearings, according to Utah State Tax Commission data obtained by The Salt Lake Tribune.

For example, the city of West Haven, bordering Ogden in Weber County, dumped its proposal to impose its first-ever property tax, which would have tacked $154 onto the tax bill of a median-priced home there.

“Everyone who testified at the Truth in Taxation hearing opposed it,” said Mayor Sharon Bolos. She was disappointed because she felt the city had made a good case that it was finally needed to eventually start its own police department, and create new parks, trails and other recreation projects.

“I had expected the City Council to pass it 4-1,” she said — matching the earlier vote that had proposed the tax increase. “But the vote against it was unanimous” after the hearing and other opposition expressed in the community.

“We will need a property tax eventually. We can’t keep avoiding it,” Boros said. “When it finally comes, I don’t think it will be a surprise. I think most people know it has to come sometime, but they didn’t want it this year.”

Another example is West Jordan. Its City Council had proposed a tax increase of $55.75 on a median-priced home, but dropped it to $50.22 instead, a hike of 17 percent instead of about 20 percent.

"It was a compromise” after mixed reaction in the city after Truth in Taxation notices and the hearing, said Kim Wells, the city’s public information officer. “No one wants higher taxes. But they also don’t want their services cut.”

The growing city had said the increase was needed largely for extra police and fire personnel, and because its last tax increases were long ago in 1988 and 2012. It settled for lower levels of hiring and somewhat less of a tax hike.

Other local governments that cut back proposed tax hikes this year include: Tooele (which settled for an 82 percent increase instead of 115 percent); Richmond (53 percent instead of 75 percent); Smithfield (36.6 percent instead of 72.9); and Apple Valley Town (35.1 percent instead of 70.3).

Also, Cottonwood Heights (13.4 percent instead of 21.9); Payson (7.7 percent instead of 25 percent); West Point (4.1 percent instead of 7.3); and Logan School District (3.4 percent instead of 7.1 percent). Ogden School District completely abandoned a proposed 8.9 percent boost.

Also the just-created town of Cedar Highlands, near Cedar City, had proposed a new tax of $1,211 on a median-priced home but reduced that to $865.

Retiring state Sen. Howard Stephenson, R-Draper, who is also president of the business-backed Utah Taxpayers Association, helped pass the Truth in Taxation law in 1985 as a lobbyist to keep taxes low — and is among those now who say it has worked perhaps too well.

“Some officials said after taxpayers showed up with pitchforks and hanging rope, they would rather run across the state naked than go through Truth in Taxation again,” Stephenson said in an interview earlier this year.

He said when that law passed 33 years ago, supporters figured governments would go through the Truth in Taxation process every five to eight years to keep up with inflation.

“We found they had a lot less courage to raise taxes than we anticipated,” Stephenson said, and waited much longer.

Some governments with large tax increases this year say they are now unavoidable after skipping them for long periods.

For example, Spring City in Sanpete County more than doubled its taxes with a 105.7 percent hike, or $93 on a median-priced home there, largest in the state. City Clerk Dixie Earl said earlier this year that she cannot remember the last time her town had a tax increase.

“But we’re in a corner now,” she said, adding the increase is needed to save the city’s police and fire protection.

Monroe, in Sevier County, also doubled its taxes, with a 100.3 percent increase, or an extra $94.55 on a median-priced home. “We haven’t had a tax increase for at least 40 years,” Mayor Johnny Parsons said earlier. “We’re about to lose our roads if we don’t do something.”

Another example is Scofield, Utah’s smallest town with 22 year-round residents but many seasonal occupants who enjoy Scofield Reservoir. It imposed an 84.8 percent tax hike, about $28 on a median-priced home.

Town Clerk Andrea Brady said Scofield went years without a major increase, but needs one now because “we’re just trying to pay the bills.”

Tax notices are now arriving statewide, where residents may see how much their own taxes have changed — and which agencies ordered any tax hikes.

No matter how high your taxes are, it could always be worse — unless you live in East Carbon-Sunnyside in Carbon County. It has the highest property taxes in the state, amounting to $3,442 on a $320,000 home (the median price statewide), according to an analysis of Tax Commission data.

Among the other highest-taxed areas in the state are: Magna (rates would be $3,100 on a $320,000 home); a corner of West Valley City in the Magna Water District ($3,040); Gunnison ($2,998) and Kearns ($2,987).

The lowest property taxes in the state are in an unincorporated part of Rich County near Bear Lake, with rates that would be $1,095 on a $320,000 home.

Other lowest-tax areas include: an unincorporated part of Summit County in the Park City School District ($1,135); unincorporated Wayne County areas ($1,157); and Garden City-Pickleville in Rich County ($1,165).