Summit County Council puts sales tax on the ballot as it faces one of three options: make $7 million in cuts next year, raise property taxes or impose a new sales tax Ta.
Click here to see what you can cut.
Basics of consumption tax
The new sales tax would be 0.5 percent on all purchases except gasoline, groceries and prescriptions, and the City Council had indicated prior to the vote that it would prioritize sales tax over property taxes. It is estimated that more than $10 million will be raised.
It cannot be levied unless a majority of Summit County voters say yes, and Prop. 18 is on the Nov. 5 ballot.
The sales tax is called the “emergency services sales tax” because state law allows it to fund search and rescue, emergency medical services, waste disposal, police, fire, avalanche forecasting, and more. other items.
Basics of property tax
If not passed, how much would property taxes have to go up? County Manager Shane Scott on Oct. 9 proposed a fiscal year 2025 budget that would increase the county’s general fund by about 40%. The company said it would make up for the $7 million shortfall.
This is not a 40% increase in a resident’s overall tax bill. That’s because the county’s general fund accounts for about 9 percent of the average tax bill, according to Chief Financial Officer Matt Leavitt.
Residents’ bills include a combination of 46 different taxing entities, including the county government. Since 2017, Summit County’s general fund has not increased.
Summit County Chief Financial Officer Matt Leavitt presented the County Council with a breakdown of all property taxes collected in Summit County on October 2, 2024.
For residents, rather than businesses, who pay more, a 40% increase in the general fund would increase the taxable value of the home by $15.25 per $100,000, according to Levitt. The taxable value of a principal residence is approximately half of the appraised value of the home.
As explained in the video above, Utah’s taxing bodies cannot increase overall tax revenue without a series of public hearings. Other changes in a person’s tax liability reflect changes in the assessed value of their assets.
Offsetting the impact of tourism
Supporters of the sales tax argue that it would help share the cost of services used by tourists and visitors to Summit County.
Brett Mickelson and Michelle Eastman, directors of Friends of Summit County Search and Rescue, signed a statement that will be published in the 2024 Summit County Voter Information Brochure. These are in favor of sales taxes as opposed to property taxes and tax breaks, especially when it comes to search and rescue services.
Last year, 94% of calls for help came from non-Summit County residents.
“What’s in my mind driving this is really that group is driving up the cost of search and rescue and a variety of other services,” Mickelson told KPCW. He also pointed out that visitors will donate trash for the multimillion-dollar landfill that Summit County must begin building next year.
Levitt estimates that 65 percent of sales taxes are paid by visitors to the county.
Who pays property tax?
All property tax revenue comes from three main areas: primary residences, secondary residences, and commercial real estate. First residents receive a 45% discount.
Levitt provided KPCW with a breakdown of the county’s property tax revenue.
Primary residence = 28.1% Secondary residence = 61.6% Commercial facility = 9.7% Other = 0.6%
“Other” includes agricultural land, unimproved land, and greenbelt features.
Although secondary residential properties make up a large portion of the county’s property tax revenue, Scott argued on KCPCW’s Local News Hour earlier this month that secondary residential properties are still part of the community. He said there is.
“(The sales tax is on) tourism that comes to visit and stay at the Montage and the St. Regis and ski, and uses all of our resources, but doesn’t pay its fair share of those resources. It’s really having a big impact on our customers,” Eastman said.
The County Council has indicated that if sales tax Proposition 18 passes, it would nip a property tax increase in the bud, calling the property tax option an emergency.
Because Summit County’s budget season coincides with election season, state law required the county council to begin a property tax process known as “Truth in Taxation” before the November election.
The Summit County Council is expected to adopt the 2025 budget by the end of the calendar year. The budget, which is expected to have a $7 million shortfall, could change by then.
Ballots are being mailed
Click here to see a sample ballot for your district.
Voter information pamphlets containing statements of support for the sales tax are available on the county clerk’s election webpage and at vote.utah.gov. It will arrive in a separate mailing from your mail-in ballot.
No one has filed a “no” statement against Proposition 18, and Utah law does not require both.
Ballots will be mailed on October 15th and the general election will be held on November 5th.
