Overvalued Property Shrinks Funds In Utah's Counties

Oct 1, 2018

Credit Utah State Tax Commission

A federal court complaint filed against the Utah State Tax Commission by Union Pacific will decrease revenues for many taxing entities throughout the state—including in Summit County. That’s the word in a news release from the state last week.

KPCW contacted Summit County Auditor Michael Howard, who said that under the judge’s order in the case, they won’t be able to collect, roughly $210,000 this year from Union Pacific. The amount is spread over several taxing entities.

According to the state’s press release, the Tax Commission, which sets tax values for centrally assessed properties—those crossing county lines—set an assessment of $1.5 billion for Union Pacific for 2018.

However, the railroad said the value should be $885 million, about 43 percent of the state’s figure.

A judge’s order in the case allows counties to collect the undisputed amount until the matter is settled. The disputed amount will be placed in escrow.

The Tax Commission has asked all 29 county assessors to notify all impacted taxing entities in their specific counties of the financial impact.