TAX NEWS - 2010

Utah Tax: Iron County tax rate likely to increase

PAROWAN - The Iron County Commission meeting Monday was one of approving adjustments, making clarifications and postponing setting the certified tax rate for properties in Iron County and the municipal service district of the unincorporated area.

Iron County Auditor Gene Adams was unable to get questions answered from the Utah State Tax Commission by the end of the meeting on new state legislation that directly impacts his ability to set the certified tax rate.

"Basically, the tax rate is artificially increased to cover the losses for lack of collections on property tax, so that collection loss is based on a five-year average because it is obvious the county is not going to collect 100 percent, so they set the tax rate based on what they didn't collect from the previous five years on average," said Charlie Roberts, state tax commission spokesman. "What the legislation did was decrease the amount the county does collect to offset the lower rate based on what they did collect, which is the redemption (to be deducted)."

Without clarification, Adams estimated the loss to the county's general fund to be $264,000 because of the new state law. Preliminary numbers he shared would increase the certified tax rate from .001663 to .001993 and from .002131 to .002738 within the municipal service district. Those numbers have not been verified or approved and will be proposed more firmly at the July 12 commission meeting, said Iron County Administrator Reed Erickson.

The certified rates are calculated by the county auditor based on adopted budgets of the various taxing entities and approved by the Utah State Tax Commission, said Roberts.

UHP adjustment

The commission unanimously approved a contract adjustment with the Utah Highway Patrol that solicited a 50-cent per mile reimbursement to its troopers who work safety shifts patrolling Interstate 15, Highway 56 and state Route 14.

UHP Lt. Steve Esplin said the law enforcement agency is standardizing all of its contracts state-wide and is asking for mileage reimbursement to help pay for expenses incurred for fleet vehicle maintenance. This proposal is in addition to the agreed upon $50 per shift the county's contract pays to UHP, which stipulates a maximum annual reimbursement of $100,000. The contract allows troopers to work extra shifts as overtime specifically for added enforcement on the main artery roads of Iron County.