How Much Are Property Taxes in Utah?

Property taxes in Utah are a primary funding source for local government services, including schools, police departments, fire services, and local infrastructure. These taxes are administered at the county level, leading to variations in tax amounts across different locations within the state. Understanding how these taxes are determined and managed is important for property owners.

Property Valuation and Assessment

The initial step in determining property taxes involves establishing a property’s taxable value. County assessors are responsible for appraising properties to determine their fair market value, which represents the theoretical price a property would sell for on the open market. This appraisal process considers various factors, such as recent sales of comparable properties, the specific characteristics of the property itself, and its geographic location.

Once the fair market value is determined, the assessed value is calculated. In Utah, residential properties that serve as a primary residence receive an exemption. Specifically, 45% of the fair market value of a primary residence is exempt from taxation, meaning only 55% of its value is subject to property taxes. Other types of property, such as commercial properties or secondary residences, are assessed at 100% of their market value. This distinction in assessment ratios impacts the overall property tax burden for homeowners.

Calculating Your Property Tax Bill

After the assessed value of a property is established, local tax rates are applied to determine the final property tax bill. These tax rates are often expressed as a “mill levy,” where one mill represents one dollar of tax for every $1,000 of assessed value. Various local taxing entities, including school districts, cities, counties, and special service districts, set their own mill levies to fund their operations.

The total property tax bill is calculated by multiplying the property’s assessed value by the combined mill levy from all applicable taxing entities, then dividing by 1,000. For example, if a property has an assessed value of $200,000 and the combined mill levy is 0.015 (or 15 mills), the tax bill would be $200,000 (15 / 1,000) = $3,000.

Property Tax Relief Programs

Utah offers several programs designed to reduce property tax liabilities for eligible individuals. The Primary Residential Exemption is the most common. This exemption applies to the primary residence and up to one acre of land associated with it, and requires the property to be occupied for at least 183 consecutive days in a year.

Another program is the “Circuit Breaker” tax relief, which assists low-income elderly or disabled individuals. Eligibility for this program requires applicants to be 66 years of age or older, or a qualifying widow, and meet specific household income thresholds, which vary annually. Veterans with a service-connected disability of 10% or more may also qualify for a property tax exemption, with the amount of the exemption varying based on their disability percentage, potentially reaching a maximum of over $500,000 in taxable value. Active-duty service members deployed outside Utah for a specified period may also be eligible for a full property tax exemption on their primary residence.

Payment and Appeal Processes

Property owners receive their property tax notices in October, with payments due by November 30th of each year. If November 30th falls on a weekend or holiday, the deadline is extended to the next business day. Payments can be made through various methods, including online portals, mail, or in person at the county treasurer’s office. Unpaid taxes become delinquent after November 30th, incurring penalties, which are a percentage of the unpaid balance or a minimum flat fee, whichever is greater.

Property owners who believe their property has been incorrectly valued have the right to appeal the assessment. The initial appeal goes to the County Board of Equalization. Valuation notices, mailed in July or August, indicate the market value set by the county assessor and provide information on the appeal process. Appeals must be filed within a specific timeframe, 30 days from the date the valuation notice is mailed or the Board of Equalization decision is issued, and require supporting documentation to demonstrate why the assessed value is incorrect. If dissatisfied with the County Board of Equalization’s decision, further appeals can be made to the Utah State Tax Commission.