Truth in Taxation
To continue to provide essential services as well as maintain and improve our city, Centerville City Council is proposing to increase revenue through a property tax increase of 14.5%
The City has not realized a property tax increase since 2017, yet the cost of providing services and infrastructure has increased considerably. Since the last property tax increase, inflation or the cost of providing the same service levels has increased 13.1%
Before the increase in 2017, it had been 25 years since the City implemented a tax increase. At that time, the City would have needed a 75% increase to catch up with inflation, but instead only implemented a 40% tax increase. The City is still playing catch up with many of the City’s long-term needs that were put off over those years.
City Council is proposing a smaller increase now to keep up with inflation, and to avoid a larger future increase or a reduction in services or quality.
WHY DOES CENTERVILLE CITY NEED A TAX INCREASE?
HOW WILL THE TAX INCREASE AFFECT ME?
- The average home value in Centerville is $414,000
- The average home currently pays $237.95 in Centerville City property taxes a year.
- The proposed 14.5% increase will raise the City portion of the property tax bill on an average home by $34.61/year or $2.88/month.
INFLATION 2017 - 2020
2017 - 2.84%
2018 - 3.35%
2019 - 2.69%
2020 - 1.74%
2021 - 1.80%
WHY HAVE MY PROPERTY TAXES GONE UP IF THE CITY HASN’T RAISED THEM?
There are two possible reasons for the change. The first is that another taxing entity (school district, Davis County, etc.) has gone through the Truth-in-Taxation process and raised their rates on one or more years which would increase your taxes. The second is that your property has increased in value more than other properties. When the property value of the City increases, the tax rate automatically decreases which gives the City the same revenue from year to year. However, if your property increases in value at a rate higher than the tax rate decreased then you will see a tax increase. The City will not see that increase because another property’s value would have been decreased or become tax exempt which would mean a tax decrease, and result in no change to City revenue.
ARE PROPERTY TAXES AFFECTED BY INFLATION?
No. To adjust property taxes, the City must initiate a public hearing process called Truth-in-Taxation and decide whether the adjustment is necessary.
HOW DO PROPERTY TAXES WORK IN UTAH?
Property tax rates in Utah are based on the actual amount of tax dollars collected the prior year. State law limits the City to receiving the same dollar amount in property taxes as it received the prior year - except for taxes from new development - unless the City Council goes through the "Truth-in-Taxation" process. Therefore, as property values go up, the "Certified Tax Rate" goes down.