In 2006, Cottonwood Heights adopted the first certified property tax rate offered to the city by the State Tax Commission as a transition from the unincorporated Salt Lake County rate. Since this original adoption, the city has not proposed nor adopted an increase to the certified property tax rate. The City also levies a 1.0 percent local option sales tax.
Real property valuations and tax rates in Utah are managed by the Salt Lake County Assessor’s office and the Utah Tax Commission-property tax division. Property tax collections are processed by the Salt Lake County Treasurer’s office, and appeals are managed by the Salt Lake County Board of Equalization, which in turn is managed by the Salt Lake County Auditor’s office.
Certified Tax Rates are calculated each year by the Utah State Tax Commission – Property Tax Division. The certified rate is the calculated property tax rate required to generate an equivalent amount of property taxes compared to the prior year’s collections.
Sales & Use Taxes:
Sales taxes are collected and remitted by businesses to the Utah State Tax Commission. Local option sales tax is levied by each local jurisdiction, usually limited to 1.0 of the usual 6.85 percent sales tax. Of the local option tax collected in each jurisdiction, 50 percent is distributed to the jurisdiction. The remaining 50 percent is collected into a statewide pool and then allocated to each local jurisdiction based on each city’s population as a percentage of statewide population. Usually, larger cities with large retail centers contribute more to the pool than they receive and in turn smaller cities receive more from population distributions than what they contribute to the pool. (Sales Tax 6.85%: 4.7% State, 1.0% Local Option, .30% Mass Transit, .25% County Option Transportation, .25% Sales Tax, .10% County Option, .25% County Zoo & Arts)
Energy Use Tax:
The 2015 Fiscal Year budget included a new energy use tax, which is a 6% tax on electrical and natural gas bills, effective October 1, 2015. Previous to this budget year, Cottonwood Heights was the only city in the state with a population above 15,000 that did not charge this tax. This tax has advantages over increasing other taxes where there are exemptions from taxation, in that the Energy Use tax is assessed on all businesses, schools, governments and churches who might otherwise be exempt from taxation
Class C Road Funds (Gas Tax):
The Class B & C road system with a funding program was established by the Utah Legislature in 1973 as a means of providing assistance to counties and incorporated municipalities for the improvement of roads and streets throughout the state.
The funds differ from ordinary local revenues inasmuch as they are subject to administrative direction by the State in accordance with legislative provision. The Utah Department of Transportation is the administrative authority on behalf of the State.
Consolidated Fee Schedule
The City Council sets the various fees for services provided by the City.