At a public meeting Aug. 8, town councilmembers voted unanimously for a tax hike that will increase property tax revenue by 30% in fiscal year 2025.
For a home worth $873,000, that means paying roughly $68 more per year. The town projects the increase will generate a total of $388,000 in property tax revenue.
Financial consultant Katie Shepley said the bump is needed because the town has some new expenses to plan for, including higher legal costs and consulting fees. Hideout plans to invest in consulting for public relations, communications and annexation strategy.
Shepley said the town’s revenue is expected to rise as well, mostly thanks to growth in the young community.
“The revenues are favorable due to an increase in anticipated building permits and inspection fees… some additional subdivisions, higher property taxes and sales taxes due to an increase in certificates of occupancy, as well as an increase in the rates,” she said.
She also explained Hideout’s unique relationship with the Military Installation Development Authority, known as MIDA, which helps generate tax revenue for the town.
MIDA is a state agency made up of appointed, not elected, officials. It was originally formed with the mission of serving veterans and the military. MIDA partners with local governments, including Wasatch County and Hideout, to invest in major economic development projects that generate revenue for its programs.
In Wasatch County, those projects include much of Deer Valley’s East Village resort expansion, the Skyridge luxury golf course, and more.
In Hideout’s case, MIDA oversaw the development of several subdivisions – which has major implications for taxes.
“The MIDA property are the homes that were built in Deer Waters, Deer Springs, Klaim and Lakeview,” Shepley said. “Those people, those subdivisions, pay taxes to MIDA directly, and MIDA then allocates those taxes to municipal funds and development funds.”
Utah code stipulates MIDA can receive the bulk of property taxes for up to 40 years in those neighborhoods. Seventy-five percent of that tax revenue goes to MIDA for more development, while 25% goes to Hideout for town expenses.
Part-time resident Deb Boyd told town councilmembers she’s “a bit alarmed” about the property tax increase this year.
Shepley said the tax increase would have been quite a bit higher if not for the tax revenue from MIDA properties.
“What we did was we said, okay, we should be able to use some of those MIDA municipal funds,” she said. “That did keep your taxes lower.”
Of the extra $300,000 Hideout needs for its general fund this fiscal year, about two-thirds, or $215,000, comes from transferring MIDA tax revenue. The remaining third will come from the property tax increase.
Shepley said the investments will go towards improving the town’s financial outlook.
“We are trying to figure out ways to develop and grow the town such that we can be more self-sufficient – we can bring in some more commercial revenue and sales tax revenue and not have to be burdening the property owners,” she said.
The amount of tax revenue Hideout receives through MIDA is only expected to grow: by fiscal year 2029, the agency estimates the town will receive around $1.3 million.
