Property Tax Updates in Utah

Tax Professionals' Resource
February 26, 2013 — 1,124 views  
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There are some variations in the Utah property tax amount payable throughout the state. Residents of some cities need to pay higher taxes than others. Tax amounts can also be greatly different among different areas in one city. The residents of some portions of the cities of Ogden, Hildale, Traverse Ridge, Salt Lake City, and West Valley City are the payers of the highest taxes in the state. This is for the reason that the jurisdiction from a number of local governments overlap in these areas, thus increasing the taxes payable. The payers of the lowest taxes in Utah are the residents of the rural Wayne County.

Latest Updates from the Government

There will be a few changes in the Utah property tax rates and exemptions in the year 2013. The new interest rate for Delinquent Personal and Real Property tax will be 7%. The exemption for personal property will be $4000 and the veteran disability exemption will be a maximum of $244,064 from the year 2013. A new property act called “Urban Farming Assessment Act” has also been passed, which states that any land greater than 2 acres but less than 5 acres, which has been used actively for farming for 2 consecutive years, will be evaluated based on its agricultural value.

No Changes in Insurance Premium Tax Rates

There will be no changes in the insurance premium tax rates for the Utah workers’ compensation. It will remain at 3.8% for the year 2013. This tax rate will be applicable to all premiums taxable under this compensation. This rate should be used to make all expected quarterly payments. This tax should be also reported on the TC-49 insurance premium return and the TC-420 self insurance return. It is also important to remember that no extensions are provided by the Utah law for filing tax returns and all such returns should be filed by the due date. Returns should be filed online.

New Bill – Property Tax to Be Used For Charter Schools

Charter schools are public schools which are run independently. There are 85 such schools in Utah. The new bill would add an explanatory line to the Utah property tax notices which would show the tax payers how much of their tax goes towards the charter school funds. Charter schools are funded from the money obtained from income tax, like conventional public schools, but they don’t have the power to raise their own property taxes. They receive local replacement money instead, part of which is given by the school districts. Lawmakers are of the view that this new bill would increase transparency among the taxpayers.

How Much Does Property Tax Contribute

In the past, government revenues in the US relied heavily on property taxes. But that is not the case now. Utah property tax is accountable for only 26.7% of the government income. However, according to a new report, the people with the lowest income in all over the US pay a higher percentage of their income towards taxes than the people with the highest income. Utah fares a little better than the rest of the country since its low-earning residents pay 9.4% of their income as taxes compared to the national average of 11%. But in most states, sales taxes earn more revenue than property taxes. So people should be more concerned about sales taxes than property taxes.

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