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Property Valuation Hikes

Click to see original imageUtah County property valuation notices will start going out from the treasurer’s office this week – and it appears owners generally had better brace themselves for sizable assessed valuation increases. Increased assessments will translate themselves into higher taxes, the extent depending to some extent upon how well taxing units control tax levies, set annually about the first of August. Valuation increases generally are resulting from (1) Utah’s property reappraisal program; and (2) new construction and improvements which add value to property. By law, cities and counties may increase their tax take by only 6 per cent in the year of reappraisal. Schools are permitted up to 25 per cent increase under some conditions via a highly-complicated formula. But these limitations are on total revenue assessed by the taxing unit- not on how the individual property owner is affected. Reappraisal stems from 1969 state legislative decision to reappraise all real property every five years in the counties on a rotating basis. The intent is to assess property at 20 per centof market value. The reappraisal has been conducted jointly by the State Tax Commission and Utah County, with the former providing a sizable staff in the massive job under which 63,000 parcels of property have been eappraised. Reappraisal doesn’t itomatically mean assessment increase, of course. The county assessor notes that not all property has been increased in value; some of it has been decreased. But the general trend is upward. This is the 25th county to be reappraised. Assessments, we are informed, actually have decreased in some counties of deteriorating market values. But in growing Utah County, with property in demand, market values are going up, in some cases dramatically. Assessments follow this trend. An initial report on Provo, showing the total valuation of real property and improvements has more than doubled this year under reappraisal, clues the owner on things to come. Assessor’s figures show total valuation at this time of year in Provo is $94,765561, a total boost of $48,008367. This represents the value only of real estate (land), buildings, automobiles or business equipment, and such personal property las urmshings and rental units. it does not include the value of state-assessed property – mostly utilities, mines, and common carriers, or vehicles and personal properties not attached to property for taxing purposes. These will hike the total valuation but are not undergoing reappraisal this year. News accounts since the start of reappraisal have told of assessment increases on the way. Property owners in cities first to receive valuation notices will know soon the extent of those increases.