Payson City Council on Aug. 3 agreed to increase its property tax revenue by keeping the certified tax rate steady at 0.001193.

Keeping the same tax rate would increase property taxes for residents and tax revenue for the city. An increase in property value throughout the city led the Utah County Assessor’s Office to lower Payson’s certified tax rate to 0.000929. Payson Finance Director Cathy Jensen said the UCAO lowered the rate to ensure taxing entities receive an equal amount of revenue as the year before.

According to Jensen, the county quoted the average Payson home value to be $406,000. By keeping last year’s tax rate, the city will generate approximately $2.2 million in revenue, based on the average home, which totals $490,000 more than what the city would have received if the county’s tax rate was approved.

According to the city’s tax increase notice, taxes will increase from approximately $207 to $266 on an average-valued home.

“The city is guaranteed only the same revenue as we had last year,” Jensen said. “So, as valuations go up in the city, the tax revenue is spread over a wider base, and that means the certified tax rate went down. That’s kind of why the tax rate went down so far because your valuations went up. Unfortunately, because we are only guaranteed the same revenue, we have increasing costs like everybody else, and that’s the main reason we’re proposed a certified tax increase.”

Jensen added that any additional tax revenue the city receives will be allotted to the general fund.

“It’s covering rising costs. We raised wages, police wages and gas prices are going up. It’s covering a lot of services. Those come from the general fund. The city has tried to keep the rate even, so that as costs increase, the citizens have the same tax rate, and we get a little bit of revenue of that,” he said.

During the public hearing portion of the meeting, several residents had a hard time understanding why their property taxes went up if the city’s rate had remained the same.

“I’m a recent move-in here,” resident Wayne Boyce said. “I have one major question about the truth and taxation rates. When I looked at my tax bill from the Utah County Tax Assessor, I saw three rates that went up. There was Central Utah Water, Nebo School District and Payson City. So, I don’t understand how you’re saying there’s no change.”

The council tried explaining that when property values increase, the certified tax rate will drop, to ensure taxing entities are getting the same amount of money. Home values have increased, not the tax rate.

Ed Seegmiller addressed the council, saying he represented a large group of retired residents concerned about additional tax burdens.

“I’m representing a group of folks that are retired in the community by Walmart,” Seegmiller said. “There are about 113 dwellings over there, and they’ve asked me to address this to you tonight. I wanted to ask Cathy if she could explain a bit more about what the tax burden will be on the citizens.”

Jensen said for the average home value, the owner would be taxed on 55% of that value, which would be about a $58 increase a year.

Seegmiller thanked the city for the services it provides, but said he was still concerned for residents living on a fixed income.

Newsletter