Matt Hemmert | Lehi Free Press

The Lehi City Council held a “Truth in Taxation” public hearing on August 20 to discuss a proposed 6.25 percent property tax increase over the current rate. The proposed annual tax increase for a $564,000 residential home would be $22.03, and the proposed annual tax increase for a $564,000 business would be $40.04.

Finance Director Dean Lundel said the city’s last property tax increase was in 2022. At that time, the city raised the tax rate 3.4 percent from the previous year. Lundel also explained that the total taxes collected by the city only make up 14 percent of bundled property taxes. For example, if a home or business owner is assessed an annual property tax of $100, $73 goes to the Alpine School District, $14 goes to the city of Lehi, $9 goes to Utah County and $4 goes to other taxing entities.

Unlike other entities that have already passed or are finalizing property tax increases, Lehi does not run a deficit and does not fund operating capital expenditures and facilities. Lehi’s proposed increase is specifically intended to provide residents with the same, if not better, level of public safety services. The proposed increase would fund salary increases to retain and recruit public safety personnel in a competitive market. In addition, the proposed increase would fund a park maintenance position.

Comparative annual property taxes per $500,000 home value:

“For all the citizens here, this is not the first time we’ve discussed this. We’ve gone through it thoroughly and looked at it closely over months and years,” said Council Member Paige Albrecht before opening the meeting to public comment.

“When people say we’re going to raise property taxes because of inflation, it scares me. I haven’t had a raise in five years,” said Ricky Perry, a Lehi resident. “I realize it’s not a big tax increase, $1.26 a month. But for those of us on a fixed income, it hurts.” Perry clarified that he is not against higher wages for public safety personnel, but suggests the city find another funding mechanism.

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Following public comments, Council Member Heather Newall acknowledged the concerns about the numerous tax increases being levied by various entities. She also pointed out that Utah County offers the opportunity to apply for a primary residence tax exemption of 45% of the fair market value.

“Who would object to giving our officers and firefighters a raise? They deserve it. (…) I don’t know if we necessarily need a tax increase to do that, though. I’m very curious to see how much we’ll have in our reserve fund from our last fiscal year. I imagine it’s probably more than the tax increase will bring us,” said Council Member Michelle Stallings.

“I support this increase because I think it is wisest to do it in small increments at regular intervals to ensure that we meet our needs and do not put the problem on the back burner as far as future residents and future councils are concerned,” Albrecht said.

“There may be other ways, like sales tax or surplus, that could potentially fund some of it, (but) we’re not always going to have a sales tax surplus. I don’t want to be in a situation where we have a year where we’re counting on a certain revenue stream and if for some reason that goes away, suddenly we’re in trouble(.) To me, that’s a sustainable and prudent approach,” added Councillor Paul Hancock.

The City Council has completed the hearing and will make a final decision on the proposed property tax increase at a later date.