PROPERTY TAX FACTS
The City of North Salt Lake provides many services and amenities to residents and businesses
which improve quality of life and provide a safe environment to live and work. Other services
such as water, storm water, and solid waste utilities are funded directly through monthly
utility rate revenues.
Other services the City provides, including public safety, fire and emergency
medical services, parks, streets and signs, sidewalks and snow removal, do not
have direct funding sources. These services are primarily paid for with sales tax,
property tax, road taxes, and other fines and user fees.
Property taxes cover only a fraction of what the City needs in order to provide these
valuable services. This year, the City of North Salt Lake will receive about $2,488,000
in general fund property tax revenue. To put this in perspective, public safety and fire
protection expenditures are approximately $4,023,000 for the same fiscal
period. Sales tax, grants, fines and user fees cover the remaining general fund
costs.
Many residents are uncertain how much of their property taxes go to their City. Many people think the
entire amount they pay is collected by the City. In reality, property taxes are allocated to different
entities including Davis School District and Davis County.
100,000 600,000 1,100,000 1,600,000 2,100,000 2,600,000 3,100,000 3,600,000 4,100,000
Looking to the future, the City has identified a need for additional public safety officers and repair and
replacement funding for parks, roads and public buildings. The City is proposing a 10% increase on the
City portion of your property tax to fund these increased services. If the increase is approved, the City’s
Fiscal Year 2016‐2017 approved budget will include an increase in property tax revenue in the amount
of $248,800. The City of North Salt Lake has not increased property tax rates in over 20 years.
How will this increase impact your property tax obligation? The average market value for tax purposes
in the City of North Salt Lake is $302,000. A resident with this home value would see an increase of
$24 per year. Also, City tax on a $302,000 business would increase $45 per year, or from $445 to $490.
Your increased payment will enable the city to add two sworn police officer positions and fund needed
repair and replacement of city parks, buildings, and other infrastructure.
A public hearing for a proposed property tax increase will be held Aug. 8 at 7 p.m. at City Hall, 10 East Center St., North Salt Lake.
UNDERSTANDING PROPERTY TAX
Residents often have many questions about who they pay their taxes to, and how taxes are calculated.
Davis County is responsible for collecting taxes for many different entities, including school districts,
cities, sewer districts, mosquito abatement districts, water conservancy districts, fire district, law
enforcement districts, and other special improvement districts. The amount you pay is based on the
Who Receives the Property Taxes I Pay?
Depending upon the location of a property, different property taxes may apply, such as
special service districts for recreation centers or other improvements. Regardless, in North Salt Lake,
the Davis School District receives the largest portion of your property taxes, typically over 64 percent
of the total amount collected, followed by Davis County at 14 percent. On average, City of North Salt
Lake receives only about 12 percent of property tax funds collected.
2017
Proposed
Property Tax Distribution by Entity Rates
Home Value $ 302,000 Davis County Schoool District 0.008125 $ 1,350
Residential Exemption 135,900 Davis County 0.001779 295
Taxable Value $ 166,100 City of North Salt Lake 0.001475 245 $269 Total Property Tax 1.2623% County Library 0.000342 57
Total Tax $ 2,097 South Davis Recreation District 0.000306 51
South Davis Sewer Conservancy District 0.000287 48
Weber Basin Water Conservancy District 0.000187 31
Davis County Mosquito Abatement District 0.000122 20
Total Tax 0.012623 $ 2,097
HOW YOUR PROPERTY TAX DOLLARS ARE DISTRIBUTED
PROPOSED PROPERTY TAX CHANGE WILL RESULT IN AN ANUUAL INCREASE OF $24.41 FOR A PRIMARY RESIDENCE WITH
A COUNTY ASSESSED VALUE OF $302,000
2017
Tax
Amount
City 10%
Proposed
Increase
Average Home Value in North
Salt Lake City
How is my Property's Value Assessed?
The value of your home or business property is determined by the County Assessor, not
the City or town you live in. Property values always fluctuate. The market itself drives
property values and throughout the year, as homes sell, some areas go up in value, some go down, and
others don't change at all. The Assessor uses this information to value each property. Some property
values may change dramatically in a single year, while other property values may change little in a
given year. The following year, the reverse may be true.
Homeowners only pay taxes on 55% of the assessed value of their home. In the State of Utah there is a
45% exemption on primary residential properties. So, if the County Assessor determines that the value
of a home is worth $200,000, and that home is the primary residence for someone, the owner would
pay taxes on that property as if it were worth $110,000 (55 percent of the full value). Commercial
properties and second homes are assessed taxes on 100 percent of the value.
Why do my Property Taxes Change from Year to Year?
There are a couple of things to keep in mind when considering how your property taxes
might change from one year to the next.
the City receives from property taxes is fixed, regardless of inflation.
2. Unless a City holds a Truth in Taxation hearing and raises property taxes, they can only receive
the same amount of property tax they received in the prior year, plus any increase from NEW
development (additional property taxes from new homes or buildings added to the City). If the
City wants to receive an increase in funds from property taxes, they must hold a Truth in
Taxation Hearing. State law requires that if the City intends to increase property taxes a full
page advertisement must be published in the newspaper and a public hearing must be held.
The full page advertisement will state the impact, or estimated increase in property taxes that
would be realized by the home owner.
3. Property taxes don't go up just because the value of your property goes up. State law requires
that, all other things being equal, if a home's value goes up by 15 percent, the tax rate by the
City (or any other taxing entity) be reduced by 15 percent, so that the homeowner pays the
same amount of taxes as the previous year. Conversely, if property values drop by 15 percent in
a given year, property tax rates increase by 15 percent so that again, the homeowner pays the
same amount of taxes as the previous year.
Additional factors which cause property taxes to fluctuate from year to year.
A) First of all, as you see on the very first graph, the City is one of several entities which can
charge a property tax. If taxes go up, one of the other entities may have raised taxes
after a Truth in Taxation hearing.
B) Second, as mentioned earlier, property values are assessed county wide by the County
Assessor. Also as mentioned earlier, the City is only allowed to receive property taxes in
the same amount of revenue which they received the previous year, plus taxes on new
growth. If property values go up, the rate goes down proportionately, and the amount
the property owners pay stays the same. However, consider a scenario where property
values on average increased by 15 percent, but in one part of the City they increase by
20 percent, and in another part of the City, they only increase by 10 percent. The
property tax rate would drop by 15 percent (proportionate to the average property
value increase). But the part of the City which had a 20 percent increase in property
values would pay slightly more property taxes than the previous year. The portion of the
City which had a property value increase of 10 percent would pay slightly less in
property taxes than the year before. This same principle applies to all agencies, such as
Davis County, Davis School District, and special districts.
C) Third, as some entities have bonds which were approved by voters and are paid for from
property tax revenues, property taxes dedicated to the repayment of the bonds
fluctuate as bond payments change from year to year.
What is the Certified Tax Rate?
Remember, the City receives the same amount in property taxes as they received the
previous year (not counting new development). While the City sets the property tax rate as a base rate,
the Davis County Auditor determines the "certified tax rate" based on the previous years assessed
valuations across the entire City and the amount of property tax received. This "certified tax rate" will
go up or down as needed to arrive at that "same amount of tax" figure ‐ the rate which will give the
City the same amount of property taxes as the prior year. The only way the City can get more property
taxes than allowed by the "certified tax rate" is to hold a Truth in Taxation hearing and make a case for
