City officials are estimating the property tax bill for an owner of a $70,000 home in Provo will go up about $5.75 this year.
Although Mayor Joe Jenkins did not request a general tax increase in the $53 million budget he proposed to the City Council, taxes will rise to repay money the city has borrowed for street improvements.Provo voters approved the tax hike by a wide margin during a bond election two years ago. The increased revenue will go to pay off general obligation bonds the city issued to finance $8 million in street projects.
City budget officers estimate the debt service component of Provo's property tax rate will increase from .000364 to .000500 next year to service the road bond debt.
Property taxes will continue to rise slightly each year over the next four years, then start to go down and keep falling until the bonds are paid off.