By Myrna Trauntvein
TN Correspondent

Juab County Commissioners passed a motion to begin the process of increasing the property tax rate for 2026.

“This is the first step,” said Marty Palmer, commission chairman.

The commission must offer proof from a public meeting with agenda items discussing, 1) Intent to increase rates, 2) Dollar amount of increase, 3) Purpose of proposed increase, 4) Approximate percentage of increase and 5) Proof that the public meeting took place at least 14 days prior to the regular general election or municipal general election.

“We are giving our intent to increase property taxes, setting the dollar amount at $300,000, expresses the purpose for the increase as needed to cover budget shortfalls and to maintain roads in Juab County, and to approximate the percentage of the increase as 7.75 percent,” said Palmer.

Before tax increase is allowed the commission must substantiate claims of compliance with evidence/proof sent to both the Property Tax Division and the County Auditor.

Property Tax increases require a Truth in Taxation process of public disclosure. Taxing entities are required to follow a series of date specific steps, including notification to the county, newspaper advertisements, parcel specific notices, and a public hearing, before adopting a property tax rate above a calculated certified tax rate.

The intent must also be published in a newspaper at 8-14 days before a public hearing and in it the public must be notified with the date and time. This first advertisement must run for at least one day.

At least 1-7 days before a public hearing the public must be notified with a second newspaper advertisement. This second advertisement must run for at least one day and be identical to the first advertisement.

Blaine Malquist attended the meeting to ask about the proposed tax rate increase.

“Do I understand that the higher rate will not increase the tax on my home?” asked Malquist. “It is needed to capture a tax on new business.”

In Utah, residential properties receive a 45 percent exemption if they’re the taxpayer’s primary residence. That means only 55 percent of the home’s value is taxable.

Malquist said that there was a 21 percent increase in inflation that made even buying groceries a challenge.

He has a degree in chemistry and worked in that field determining air quality before becoming an educator. It was because of this education and experience that he did not want the inland port as it was proposed. The trains and trucks that would be used would affect air quality.

“This tax rate, if approved, would not go into effect until 2026,” said Melanie Cowan, county treasurer.

Every property falls under several different taxing entities, which are then grouped together into a tax area. In that tax area, the budget of each taxing entity is the main force behind the amount of property tax. Taxing entities are guaranteed the prior year’s property tax revenue regardless of overall property values. This means when property values change, there is neither an increase nor decrease to their budget.

“Utah law states that property tax revenues provided to a taxing entity are to remain level each year plus any new growth,” said Marvin Kenison, commissioner. “This means that property tax revenues are flat from year to year regardless of changes in market value.”

There is no built-in adjustment for inflation or other market changes. Though the values of property may increase or decrease, the rate is adjusted to ensure that taxpayers will still pay the same amount of tax.

This creates stability in property tax collections and helps avoid the ups and downs associated with market fluctuations, but it also means that no adjustments are made to allow for inflation or to cover the increasing costs of providing services. The only way for counties to increase property tax revenue is to bring in new growth or raise revenues through increasing taxes.

New growth is new fixtures or construction, not a change in market value.

The median annual property tax payment in the Summit County is the highest in the state.

“Of the 49 counties,” said Palmer, “only San Juan is lower than we are.”

Clinton Painter, commissioner, said that Juab should probably plan on holding a Truth in Taxation hearing every year.

“We need to bring the tax up to a level to what we can call livable,” said Kenison.

Painter said he would make the motion to declare the intent of the commission to increase property taxes, setting the dollar amount at $300,000, and to approximate the percentage of the increase as 7.75 percent.

Kenison made the second, and by roll call vote, all voted in favor.

John Crippen, county administrator, said that the timeline would be followed and a public hearing would be advertised and held.