By Aidan Mortensen | KOAL News
More than 60 cities, school districts and special service districts across Utah will participate in the state’s truth-in-taxation process, seeking to raise property taxes. In Carbon County, Wellington is the lone city participating in the process, seeking a 225.31% hike – the highest in the state.
Wellington, which hasn’t seen a rate increase since 2017, is searching for a way to solve the city’s budget deficit. Wellington City financial consultant Barbara Clendennen said that a .005 property tax rate will help the budget, but it wouldn’t completely solve the deficit, according to City Council minutes from June 11.
During this meeting, Council member Kathy Hascall asked Clendennen about other ways the city could seek to increase revenue. “Clendennen stated that a museum would increase sales tax. If a hotel or motel came in, that would provide more room tax. She also stated that the council needs to seek grants. That there could be funding to help with payroll or to pay off the current loans.”
This answer prompted Council member Brian Thayn to say,” The council needs a more solid plan than to ‘hopefully find grants and funding. ‘”
Ultimately, the council approved sending the proposal to the Utah State Tax Commission to begin the truth-in-taxation process.
In a notice published by Wellington City, the municipality explains,” If the proposed budget is approved, Wellington City would receive an additional $376,735 in property tax revenue per year as a result of the tax increase. If the proposed budget is approved, Wellington City would increase its property tax budgeted revenue by 224.91% above last year’s property tax budgeted revenue excluding eligible new growth.”
The notice also shares the increase for residences and businesses. “The Wellington City tax on a $256,000 residence would increase from $216.41 to $704.00, which is $487.59 per year. The Wellington City tax on a $256,000 business would increase from $393.47 to $1,280.00, which is $886.53 per year.”
Truth-in-taxation is one of two ways in Utah in which property taxes can be increased, the other being calling an election and putting the proposed increase on the ballot. Designed to ensure transparency in the taxation process, truth-in-taxation requires taxing entities to inform taxpayers about proposed tax rates or revenue increases and hold public hearings where residents can provide feedback.
Wellington isn’t the only small town eying a significant tax hike; Uinta City in Weber County is looking at a 100% increase, while Eureka in Juab County has submitted a proposal for a 72% hike.
Citizens of Wellington will have the opportunity to speak on the proposed increase at a meeting of the City Council focused solely on the proposal. This meeting will be held on Wednesday, Aug. 13, starting at 6 p.m. in Wellington City Hall.