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Show 1 981 actions cause property tax shift Adjustments ordered by the State Tax Commission and the 1981 Utah Legislature will result in a shifting of local property taxes among the several rounties of the state. This was pointed out by Utah Foundation, the private tax research organization, in a study of 1981 property tax revisions. Actions taken by the Tax Commission and the Utah Legislature this year have resulted in (1) termination of the statewide reappraisal program, (2) application of adjustment factors among the several counties in order to achieve greater assessment equality, (3) a 20 percent reduction in local assessments in order to offset the effect of the adjustment factors, (4) a 6 percent limit on property tax increases by local units following the adjustments, ad-justments, and (5) a slight (0.75 mill) reduction in the basic school levy. The net effect of these changes was calculated to leave total property taxes throughout the state at about the same level that would have prevailed had no change been made. Some taxpayers, however, will experience an increased property tax burden because of these actions, while others may realize some tax reduction. The estimated change in local assessments resulting from adjustments ad-justments ordered by the State Tax Com mission and the Utah Legislature for 1981 in Uintah County is an average net increase of 66 percent over last year. Duchesne and Daggett Counties are currently in the process of being reassessed under the statewide reappraisal program and the change has not been calculated by the Utah Foundation. Uintah County is being reassessed mider the reappraisal program for 1982. Foundation analysts indicate that the adjustments ordered by the Tax Commission this year should improve equalization among the several counties of the state, but will not completely eliminate county variations. Moreover, an added difference dif-ference between property classes will be created by the provision which allows a 20 percent reduction in the assessment of locally-assessed real property. While equalization among counties may improve because of the adjustment ad-justment factors being applied, equalization of property within counties is likely to suffer in the year ahead. The Foundation study indicates that it is doubtful that the counties will be able to fill the void created by the repeal of the state reappraisal program. As a result of the administrative and legislative changes made this year, local property assessments in Utah were reduced as much as 21 percent in some counties and increased as much as 140 percent in others because of variations in assessment-sales ratios. Moreover, different rates of change may be applied for the various types of locally-assessed real property. In Salt Lake County, for example, there was a 20 percent reduction for condominum property, a 16.8 percent reduction for regular residential property, and only a 1.6 percent reduction for commercial and industrial property. Actual property taxes imposed, of course, depend not only on the assessed valuation determined, but also the combined mill levies imposed by the several local taxing units this month. In counties where the assessments are raised by 10 percent or more, as a result of the adjustments, local levies must be lowered so that the anticipated yield from the property tax will not exceed 106 percent of the yield for the previous year. This limitation does not apply to new construction nor to levies for the basic school program and for the retirement of bonded debt. |