Property Taxes In Salt Lake City
When it comes to purchasing a home, you have to factor in a lot of things, including the property taxes. While some property taxes keep on increasing all across the nation, you’ll be glad to know that the property tax in Salt Lake City is among the lowest of a major metropolitan area in the nation. The average property tax in Utah actually ranks the state the 11thlowest in America. Most of the taxes go to local schools and the city’s extensive public works, making Salt Lake City’s property taxes pretty fair.
The city’s property taxes are set using a calculation that’s created by the Utah Constitution. Primary residents are taxed at 55% of the property’s value, while secondary or income properties are going to be taxed at 100% of the value of the property. So if a house is valued at $400,000, then it’s taxable value will be $220,000.
Even though Salt Lake City’s property taxes are the highest in Utah, it’s still relatively low when compared to other parts of the nation that are comparable in location and size. Thanks to Utah law, property taxes can automatically increase or decrease if the property value increases or decreases, too. This ensures that tax revenues continue to remain consistent each year to keep property taxes at a constant level. So if a property’s value increases, the taxable percentage will decrease. Thanks to these minor fluctuations, the state can allow for proper budgeting each year so that your money is at work.
Any taxing entities can’t automatically increase taxes due to Utah’s “Truth in Taxation” law. This ensures that taxes can’t go up without a public hearing and vote from its governing body. Owners are sent notices regarding the previous year’s taxes and the new proposed rates. They’ll then be able to state their opinion during the public hearings and vote on the changes.
Utah’s favorable laws and low property taxes are one of the reasons why many are moving to Salt Lake City. The appeal of this up-and-coming city and its affordable housing options is what drives many to want to relocate!