How Property Taxes Are Determined
Property taxes are calculated by multiplying the taxable value of the home by the certified tax rate. Property values are determined by the County Assessor based on a systematic annual review of current market data and a detailed review of property characteristics at least once every five years. The certified rates are calculated by the County Auditor based on adopted budgets of the various taxing entities and approved by the State Tax Commission.
Determining a tax rate is a multi-step process. The governing body of each taxing entity (county or city government, school district, special service district, etc.) approves an annual budget. Each entity's budget is divided by the taxable value of all property (including real, personal, and state assessed property) within that entity's service area.
- Example:
- If Salt Lake City School District approved a budget of $75,000 and the total taxable value of all property in Salt Lake City School District was $15,000,000 the tax rate for the year would be 75,000/15,000,000=.005.
That rate is examined by the Utah State Tax Commission to make sure it is below the "Certified Rate" which is a ceiling set by state law to protect taxpayers from unchecked tax increases, lf the proposed rate is above the certified rate, that agency must advertise the proposed increase and hold public hearings before their rate can be approved.
The scheduled dates for budget hearings can be found in your notice of Property Valuation and Tax Change and in your Annual Tax Notice.
The County Auditor divides the county into tax districts. Each unique combination of 57 taxing entities within the county results in a new tax district. For the 2005 property tax year, there are 59 taxing entities and 315 tax districts. The approved rates for each of the taxing entities in a tax district are totaled, and the Treasurer's Office multiplies the total tax rate by the taxable value for each individual parcel, and issues a bill by November 1st of each year.
What the County Treasurer does not do.
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