The district says the hike is needed to fund salary increases for teachers in efforts to stay competitive and counter educators being lured away by other school districts.

Devyn Dayley, Provo City School District business administrator, explained that the entity’s tax rate for fiscal year 2026 will decrease from 0.007208 to 0.007017 because home valuations in Utah County went up. The average property tax value of a home in the county has increased by 0.94%, while the average business has jumped by nearly 1.5%.

“We don’t receive any kind of (financial) windfall in the school district if the valuations go up,” Dayley said before the board on Tuesday.

Caleb Price, director of communications for Provo City School District, said the impact to residents will vary depending on the county’s valuation of their specific property.

“There are some residents that will see a slight increase because their valuation was over the county average and there are other residents whose valuation is closer to the county average that will see an overall decrease in total taxes paid to the district,” he told the Daily Herald on Thursday.

Dayley said the tax adjustment is anticipated to generate just over $4.3 million.

She noted that the district has already incurred $7 million of added expenses due to a 30% rise in health insurance costs, health department contracts, online education, retiree medical coverage and an increasing need for substitute teachers.

“Some of that is covered by our weighted pupil unit and then the rest of that will be covered by our tax increase,” Dayley said.

Less than five people addressed the board during the public comment period at the hearing.

Nathan Hatfield, a parent, emphasized the value of investing in teachers and education, expressing support for the proposed tax increase.

“To be honest, I haven’t studied the specifics of what’s being proposed. I just know that anytime that we can make it easier for teachers to do what they do, I’m wholeheartedly supportive of that effort,” he told the board.

Another resident, Brian Cannon, said he too supports the tax increase. However, he noted board members and district leaders should be held accountable in ensuring they are operating at a cost-effective level, citing a recent financial restructuring.

“I just want to encourage the board to look carefully at what savings have been accrued as a result of the recent reorganization,” he said. “And to be sure that you feel comfortable in moving ahead with this increase and (you) feel that’s responsible from a physical efficiency standpoint.”

The board voted unanimously in favor of the measure.

The full meeting can be found online at provo.edu/truth-in-taxation-information.

Price said increases to salaries will go into effect in time for the 2026-27 school year.