ST. GEORGE — In the wake of Ivins setting a date for a truth-in-taxation hearing to potentially raise the property tax rate, a group with the goal of limiting local and state taxes in Utah has a surprising answer to the question, “What does the Utah Taxpayers Association think of it?”
They like it.
Speaking for the association founded just over 100 years ago, Vice President Malah Armstrong told St. George News she agrees with the assessment of some Ivins officials and City Council members that Ivins – like many Utah cities – has let the need to avoid raising taxes supersede the need to fund vital city services.
“Ivins City has not increased their property tax since 2010,” Armstrong said. “We are living in a very different economy than we were in 2010, and it is likely that the city has needs that are not being met, thus making truth in taxation and increasing property taxes appropriate.”
The council made the move at its meeting last Thursday to schedule a truth-in-taxation hearing for the evening of Aug. 14 at Ivins City Hall. It doesn’t necessarily mean such a hearing will take place, but the city had until June 1 to inform the state that it would hold such a meeting.
During the Thursday meeting, Councilmember Mike Scott noted how the fear of a truth-in-taxation hearing has stifled the ability of local cities to pay their bills. Noting a conversation he said he had with a council member from Santa Clara whose name he didn’t reveal, Scott said it should be a requirement that cities raise taxes by small amounts on a regular basis to go along with the rate of inflation.
“The whole concept of a property tax increase is weaponized against City Council members at election time. ‘Oh, Mike Scott voted to raise your taxes,’” Scott said. “I think saying, ‘I’m never going to raise taxes’ is fiscally irresponsible. I’d say not raising taxes this year is fiscally irresponsible. We need to do it.”
Under a state law passed in 1985, a truth-in-taxation hearing is required in Utah whenever a taxing entity proposes to increase property tax revenue beyond what was collected the previous year.
According to media reports at the time, the Utah Taxpayers Association played an instrumental role in creating the law that created the hearings. But Armstrong said the law was not meant to keep cities from ever raising taxes but rather to do it incrementally with transparency.
“We recommend that taxing entities go through the truth-in-taxation process every five to seven years to account for inflationary increases to their costs and to avoid a large and unpredictable hike at longer intervals,” Armstrong said. “The truth-in-taxation process and manually adjusting the property tax rate is fundamental to good property tax policy.
“Truth in taxation fosters careful budgeting, accountability of taxing entities and communication between taxpayers and their elected officials.”
The City Council said they will be debating the possibility of turning to a property tax rate increase during its two June meetings to determine if the truth-in-taxation hearing is still warranted.
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