Lehi City Council discusses proposed 6.25% property tax increase

Matt Hemmert | Lehi Free Press

The Lehi City Council held a Truth in Taxation public hearingon August 20 to discuss a proposed property tax increase of 6.25percent to the current tax rate. The proposed annual tax increase on a residence valued at $564,000 would be $22.03, and the proposed annual tax increase on a business valued at $564,000 would be $40.04. 

Finance Director Dean Lundel said the city’s last property tax increase was in 2022. At that time, the city increased the tax rate by 3.4 percent over the previous year’s rate. Lundel also explained that taxes levied by the city total only 14 percent ofbundled property taxes. For example, if a home or business owner is levied $100 in annual property tax, $73 would go to Alpine School District, $14 to Lehi City, $9 to Utah County, and $4 to other taxing entities.

Unlike other entities that have adopted or are still finalizing property tax increases, Lehi is not running a deficit or funding operational investments and facilities. Lehi’s proposed increase is earmarked specifically to provide residents with the same, if not increased, levels of public safety services. The proposed increase would pay for salary increases to retain and recruit public safety personnel in a competitive market. Additionally, the proposed increase would fund one park maintenance position. 

Comparative Annual Property Tax per $500,000 home value:

“For any public that might be here, this is not the first time that we’ve discussed [this]. We’ve gone over it and looked at it reallyclosely over months and years,” Councilmember Paige Albrecht said prior to opening the meeting to public comment. 

“When people say we’re going to raise [property taxes] based oninflation, that scares me. I haven’t had a raise in five years,” Lehi resident Ricky Perry said. “I realize it’s not a big tax increase, $1.26 a month. But for those of us that are kind of on a fixed income, it hurts.” Perry went on to clarify that he’s not against increased wages for public safety personnel but suggest the city find another funding mechanism. 

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After public comments, Councilmember Heather Newall recognized the concern with the numerous tax increases from various entities. She also pointed out that Utah County providesa way to file for a primary residence exemption of 45% of fair market value. 

“Who would be against giving our officers and fire department a pay raise? You deserve it. […] I don’t know if we necessarily need a tax increase to do that, though. I’m very interested to see how much we’re going to have in our reserve fund from our last fiscal year. I can imagine it’s probably more than the tax increase will give us,” Councilmember Michelle Stallings said. 

“I support this increase because I think the wisest thing to do is small incremental increases periodically to make sure we keep up with our needs and that we don’t kick that can down the road for future residents and future councils,” Albrecht said. 

“There might be other ways, sales tax or surplus, that could potentially fund some of this, [but] we’re not always going to have a sales tax surplus. I’d hate to be in a position where we have a year where we’re counting on a certain revenue stream, and when that drops off for whatever reason, all of a sudden,we’re scrambling[.] To me, this is a sustainable and prudent approach,” Councilmember Paul Hancock added. 

The City Council concluded the hearing and will make a final decision on the proposed property tax increase at a later date.