Proposed Property Tax Increase

When you receive your property tax notice from Salt Lake County in late July, you will see that Midvale City is proposing a property tax increase.  The increase on a $200,000 home is about $8 per month, or $100 per year.  Only about ten percent of your total property tax bill goes to Midvale City.  The majority of your property tax is distributed to the School Districts and Salt Lake County.  The accompanying graph illustrates how much each taxing entity receives from the property taxes you pay.

The notice will show that your Midvale taxes are increasing almost 150%.  The percentage increase looks high because our tax rate has been extremely low since joining the Salt Lake Valley Fire Service Area (SLVFSA) in 2011.  At that time, the City reduced its property tax rate to offset the rate of the SLVFSA.  The increase proposed by Midvale is about 6% of your total property tax bill.        

As reported in last month’s newsletter, this is the first property tax Midvale City has proposed since calendar year 2010.  If the proposed rate is adopted, the City’s revenue will increase by $1.4 million.  The additional revenue is needed to pay for road improvements, increases over time in our contract with the Unified Police Department, and capital projects.  The City has been able to cover cost increases over the past six years, but in order to continue providing vital services such as public safety and road maintenance, a property tax increase is necessary.

Funding road maintenance is one of our most pressing issues.  The Utah State Legislature increased the statewide Gas Tax by 5 cents per gallon effective January 1, 2016, adding $77,000 per year to the City for road maintenance; however, Salt Lake County voters rejected a .25% general sales tax for transportation, which would have provided the City with an additional $540,000.  The budget for road maintenance is $800,000 this year, up from $530,000 in FY 2016.  The desired funding level for road maintenance is $1.5 million per year.  

We hope that you were able to attend the June 21, 2016 public hearing on the proposed FY 2017 Budget.  A second public hearing to adopt the proposed property tax increase is scheduled during our Midvale City Council at 7 p.m. on August 9, 2016.   The Fiscal Year 2017 budget is available on the City’s website (www.midvalecity.org).  You may also call the Finance Director at (801)567-7238 if you have questions.