Wednesday, August 31, 2022
Tax Time, Part 1
Posted By Babs De Lay on August 31, 2022, 4:00 AM
It's everyone's favorite time of the year—Property tax time. Not!
Even though most of us dread paying taxes, if you own property in Utah, you should have received your property tax notice by now.
It may surprise you to learn that Utahns generally pay below the national average in taxes. According to smartasset.com, the average property tax rate in the U.S. for a $500,000 home is 1.11% of the assessed home value, or $5,500. In Utah, it's 0.6% of the assessed value, or $3,000 on the same value home.
Utah's original Constitution in 1896 provided the authority for the state to tax all tangible property under certain categories and provisions. However, it took until 1931 for the Utah State Tax Commission to be created. And in the decades since then, legislators have been tweaking the rules for taxing the assets of Utah citizens.
Each county assessor establishes taxable values for real and personal properties within their borders via established appraisal practices. Those studying to become a licensed real estate agent learn there are three ways to figure property value: income, cost or comparable sales. Assessors and appraisers use these to figure value based upon age, condition, economic obsolescence, income (if a rental) and recent sales data.
If you own a farm, your property is appraised on its capacity to grow plants and/or animals. And every year, the state tax commission recommends valuation guidelines to county assessors.
Many believe that the property value calculated by the tax assessor is the true value of your home, land, condo, investment property or commercial building. It's not.
The value is calculated by a computer, and there's a form attached to your tax notice that you can easily fill out to notify the county's Board of Equalization if you disagree with the value.
Provide sales data or an appraisal and send it in with your protest and wait to hear if the local assessor agrees or disagrees with you. Also, you can go in person and meet them eye-to-eye to explain why your property is not worth what's appearing on your tax notice. If they don't see your logic, you can protest this all the way to the state level.
It's a free process, too. You don't need to hire a CPA or an attorney to fight taxes. And know that the assessor can't sell your property at a public auction for lack of payment of property taxes for five years.
Sadly, too many people in Detroit lost their homes because they failed to understand the system, were afraid to fight the system or didn't know they had options at all.
If you want to challenge the proposed property tax you just received, you have until Sept. 15 to fill out the form and challenge the assessor's proposed value—mailing it in by that date. You can also just walk into the assessor's office in your county if you need help filling out the required information.
Next week, Part 2 on what happens if you lose your appeal and what your tax money pays for!
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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