Frequently
Asked Questions relating to school taxes:
We just
passed a school bond in November of 2015 to pay for these new schools. Why are you raising my taxes again?
The bond that voters approved last fall was to obtain
the money to build an elementary school, a middle school and a swimming
pool. It was one-time money that was
just to be used to build the facilities.
However, each school we build has on-going expenses for the teachers,
administrators and staff who work there. That money comes from the taxes property owners in Wasatch County pay. This rate increase is to generate the
$850,000 annually to pay the costs of operating the school.
How much
did the school bond in November of 2015 raise my taxes?
Last year’s bond raised each home-owner’s property
taxes by $53.02 for every hundred thousand dollars of property value. At the time of the bond election, it was
projected to cost $67.04 per hundred thousand dollars of value. The school district’s good bond rating,
selling the bonds at the appropriate time, the significant growth in the County's assessed valuation, and good financial planning by the
district management resulted in better than expected rates on the sale of the
bond, thus lowering the cost for each taxpayer.
What is
the Certified Tax Rate?
The Certified Tax Rate is a mechanism put in place by
the state of Utah to protect taxpayers. Property values can climb through a
number of factors. As the value of your home goes up, so do your taxes. This program re-evaluates the values of homes
and the rate of property taxes on an annual basis to keep the money collected
by taxing entities such as Wasatch County School District, at a consistent
level. For example, if property values
county-wide increased by 20% in a single year and there was not adjustment to
the tax rate, the school district would receive a 20% increase in their revenue
stream. Instead, the Certified Tax Rate
is used to adjust everyone’s taxes downward to keep the taxes collected at the
same basic level as the year before.
Only a citizen-approved increase (such as a school bond) or an increase
imposed by the school district at a Truth in Taxation hearing, can raise the
tax rates for homeowners. Likewise, in a recessionary period, if values of
homes decrease, the Certified Tax Rate would increase home-owners taxes to
provide adequate funding for the school district.
How much
will the increase in the Certified Tax Rate raise my taxes?
The Certified Tax Rate increase will raise home-owners
taxes $11.04 per hundred thousand dollars of property value.
Why is
this increase in the Certified Tax Rate necessary?
This increase in taxes is needed to pay the costs of
staffing and equipping the new schools approved by voters last fall.
My home
was reappraised by the county assessor this past year and my taxes seem way out
of line. Is there anything that I can do
about it?
If you feel that your property has been incorrectly
valued, there is an option available for you.
Wasatch County has an appeal process
with the County Board of Equalization. The deadline for an appeal this year is
September 16, 2016 at 5:00 p.m.
Information about this process can be found on your tax notice received
from Wasatch County.
My home
was not reappraised last year. Does that
mean that I will see a big jump in taxes next year?
Not necessarily.
The county is on a five-year rotation for reassessment of the properties
in the valley. Depending on when your
last appraisal has been, it can be up to 4 years before your property is
reassessed. However, if there has been
significant movement in the value of properties in your neighborhood, the
county sometimes shorten the times between assessments, so your rotation may be
less than 5 years.
How
often does the county reappraise our homes?
The general rule is once every 5 years. However, that time period can be shortened if
there is significant change in property values in your neighborhood.
Is there
any way that we can better manage our money to pay these bonds off quicker?
Wasatch County School District is well known across the
state for the outstanding way they manage their budgets. That is the reason that the district has an
Aa3 rating with Moody's. It is also why they were
able to collect a $6.7 million premium on the sale of last year’s bonds. That premium was paid because lenders know
that their money is secure with Wasatch County School District and they wanted
to be the ones who purchased the bond.
That provided $6.7 million towards the new buildings that does not need
to be repaid.
Wasatch County School District looks for opportunities
to move existing bonds to lower interest rates.
On several occasions, bonds have been refinanced to either lower the
bond rate or to shorten the life of the bond; sometimes both goals have been
accomplished with one financial move. The business administrator has been
responsible for eliminating years of bond debt by aggressively watching rates
and refinancing when there is an advantage for the district.
Leadership in the Wasatch County School District
partners with outstanding professionals in the finance world to make certain
that they are following current best practice methods. They also constantly look for ways to make
the most of each tax dollar collected.