A $36 million property assessment "goof" will make Sevier County residents dig yet a little deeper into their pockets to pay property taxes despite substantial tax raises earlier this year.
Utah Power & Light Co. listed its property valuation at $36 million more than the actual value in Sevier County, an error that wasn't discovered until after property evaluation notices were sent out by County Assessor Leda Jensen. Tax revenue for the county, the Sevier School District and the special assessment for the Central Utah Project is therefore less than had been anticipated.Other counties were also adversely affected, but in lesser amounts than Sevier, while some will get more revenue than anticipated.
Sevier County Clerk Steven Wall explained that the error was related to UP&L's power transmission lines. Several lines originate from a substation about 10 miles north of Richfield, but they traverse other counties. Initially, the value of all of the lines was listed by the utility as crediting Sevier County when assessed value of some UP&L properties should have been credited to other counties.
The loss in anticipated tax revenue is even more significant in Sevier County because county commissioners more than doubled taxes in the past two years, and school district taxes also increased this year. A large number of taxpayers voiced angry discontent at tax hearings.
The net result of the error in Sevier County is that the county will receive about $115,000 less than budgeted. The school district's revenue was reduced by $88,500 and the CUP by about $10,000. Although the school district gets the highest portion of the local tax dollar, some of the revenue wasn't proportionately affected as much as county taxes because a substantial amount of the district's revenue comes from the state, according to Samuel Ware, district business administrator.
Ware explained that taxes were not at authorized limits in three sources of revenue. The reduced valuation of UP&L properties will adversely affect the school district's capital outlay (debt service) by about $68,000, the board-approved leeway by $13,700 and the transportation levy by about $6,800.
The basic state equalization levy remains unchanged, Ware said.
Emery County, on the other hand, got a windfall of more than $300,000 from the shift in valuation of UP&L state-assessed taxes. County auditor Karen Truman estimated that the Emery County School District will get $200,000 more in utility tax money than originally assumed, and the county and Castle Valley Special Service District will each receive about $58,000 more.
A letter from the Utah State Tax Commission, received by Sevier County Commission Chairman Merlin Ashman, authorized the county government to "adjust tax rates to offset the loss in revenues caused by the reduction in value."
The net result of the error for Sevier County taxpayers: The owner of a $50,000 home will pay $11.72 more than was shown on the tax evaluation notice. The county will receive $8.34 of the amount; the school district, $2.52; and the Central Utah Project 86 cents.
Wall said the UP&L valuation error was discovered by Sevier County Assessor Pam Hendrickson, who notified the Tax Commission. The commission then apparently contacted UP&L, notifying the utility's officials that there had been a mistake in the value of property assessment. The latter then completed its own internal audit and found the "goof."