Property taxes are unpopular, and this would put at risk a system that has kept a downward pressure on those rates for years.
The Utah Foundation reports Utah’s property tax burden is the 34th highest in the nation. The reason it isn’t higher is that lawmakers long ago passed a law known as Truth-in-Taxation.
Under that system, local governments may not collect more in property taxes than they did the previous year, other than to account for growth within their boundaries, without calling it a tax increase and holding hearings. If real estate values appreciate, property tax rates must be lowered to compensate. If the market is bad, rates can go up.
In 1996, lawmakers decided to apply this rule to the basic levy for schools as well. The results have been dramatic.
