Your Tax Bill and the City's Future

The statements in this article are the author's views and not necessarily of the entire city council.

I was a teenager during the time of the “The Great Inflation” when inflation peaked at 13.5% in 1980. I remember my parents and grandparents talking about the negative effects frequently, motivating me to study macroeconomics and fiscal policy in college. 

Recent inflation has impacted everyone in Cottonwood. Most concerning are increases of basic living costs such as housing, groceries, and utilities. I’m concerned about inflationary effects on families and the city’s budget. Road maintenance and infrastructure costs are up 25%. Staff wages have also increased to keep up with inflation.

Close-up of a “Whip Inflation Now” [WIN] button, President Ford’s symbol of the fight against inflation. (Photo: Bettmann/Bettmann/Getty Images). Source: The Great Inflation, Federal Reserve History, https://www.federalreservehistory.org/essays/great-inflation.

Since it is property tax month, I want to clarify some facts and misconceptions about city taxes.

Truth: The last time the city council voted to increase property tax was in 2018.

Myth: Property taxes are the main source of revenue for the city.

Property taxes are about 1/3 of the total annual revenues. Sales tax, franchise taxes, licensing and other fees, and grants also contribute to the city’s budget.  

Truth: Property tax rates have decreased.

If you compare your current property tax notice to previous years, property valuations have generally increased, but the total tax rate has decreased. Utah law prevents tax entities from automatically collecting windfalls when property values rise.

 Myth: The city of Cottonwood Heights is also Cottonwood Improvement District and Cottonwood Heights Parks and Recreation.

These entities appear on your tax notice “Cottonwood Improvement” and “Cottonwood Heights Parks”. They are not part of city government. The names are coincidental. They are independent taxing entities with their own elected boards and budgets.

Truth: Property taxes have increased for multiple entities.

Over the past two years, Canyons School District has raised property taxes by $15.6 million, Central Utah Water by $7.6 million, and Cottonwood Improvement District $1.7 million. Public hearings are always scheduled and noticed for proposed property tax increases.

Truth: There is tax relief for seniors and other qualifying low- or fixed-income residents.

Utah’s Circuit Breaker Property Tax Credit Program can reduce the amount owed by qualifying homeowners. There is also relief for seniors who rent through comparable credit on a portion of rent paid. Find out more at https://www.saltlakecounty.gov/treasurer/tax-relief/circuit-breaker/. Please help spread the word about this program.

Lower taxes through economic development

 Tax revenues fund critical city services. We’re looking to boost the city’s economy and tax revenues through new projects like the town center and gravel pit developments. These initiatives will bring in sales tax and additional property taxes from new residential and business properties. We’ve started updating the city’s general plan that will include important economic development goals. The public will have a chance to review the plan draft. Your feedback is always welcome —whether on the plan itself, economic development, or any other city issue. ■