At its meeting Tuesday the Park City Board of Education will hold a public hearing as it considers raising taxes.
The board voted to raise taxes by about $3.6 million at its meeting in June. As a result, the district must go through the state-mandated “Truth in Taxation” process, which requires a public hearing on the matter.
The $3.6 million increase is joined by a separate $5 million tax increase to pay for debt the district issued to upgrade local schools. It’s the first payment for the district’s $79 million facilities bond that voters approved in November.
Property values within the Park City School District have increased by 39% in the past year. That kind of growth hasn’t been seen locally since just before the Great Recession in 2008.
That spike in value means tax rates will decrease. However, with home values increasing so quickly, the decreased tax rate could still lead to homeowners paying more than they did last year.
According to a budget summary, the tax bill for a $1.1 million primary residence will total around $2,300. Second homeowners and businesses will pay almost twice as much.
The growth in property values does not result in skyrocketing revenues for the district. Park City has to send millions back to the state each year in a process known as recapture.
Park City Education Foundation President and CEO Abby McNulty told KPCW that 96% of the public education tax dollars collected within the district end up being reallocated elsewhere.
“Many people move from communities where all of the tax dollars collected stay within the local community," McNulty. "And that’s not the case in the state of Utah.”
In 2023, the district expects $24 million of local taxes will be collected and given to the state to be distributed to other districts around Utah.
The board is set to meet at 4 p.m. Tuesday at the district offices on Kearns Blvd. The meeting will also be streamed on the district’s YouTube page.
The Truth in Taxation hearing is scheduled to begin at 6 p.m.
