Residents of Tooele City could see a slight decrease on their 2013 property taxes, officials say.
The city’s 2013-2014 certified tax rate was approved at .252 percent Wednesday night, a slight decrease from last year’s .2576 percent rate. The decline was not the result of decisions made by the city council, but should be attributed to the method used to calculate the certified tax rate, said Tooele County Auditor Mike Jensen, who helps calculate rates for all taxing entities in Tooele County.
Taxes should be approximately $207 for a $150,000 homeowner. That’s down a few dollars from an estimate of $212 in 2012, according to figures from Glenn Caldwell, Tooele City finance director.
The certified tax rate is determined by an equation that is designed to result in the same amount of tax revenue one year to the next, Jensen said. In years when growth and increased property values result in additional tax revenue, the rate that individual property owners pay goes down.
This year, the total value from which the tax rate is derived — which includes all real property, personal property and assessed property values adjusted for multiple variables — increased by $66 million.
As a result, most Tooele City property owners should see a small decrease in their city property taxes for the 2013-2014 fiscal year. However, the taxes on properties that gained value may still increase despite the rate change. The tax decrease will not be universal, said Jensen.
Additionally, Jensen said the city decrease is not large enough to counteract the impact of the county’s tax increase that was approved by the Tooele County Commission last month.
The certified tax rate generally fluctuates from year to year, and can often vary dramatically, said Caldwell. This year’s decrease was one of the smallest changes Tooele City has seen in recent years, and may not have much impact on most residents.
Overall, Jensen said, he viewed the rate change as good news for Tooele City.
“Any time you can see a tax rate going down, that means property values are going up,” he said. “It may be in the eye of the beholder, but I think most people like to see their property values go up.”