Ogden Valley leaders narrowly voted to move forward with a property tax hike of up to 512.6%, though whether they’re able to do so remains subject to the Utah Supreme Court.
The Ogden Valley City Council voted 3-2 Tuesday night to adopt a budget for fiscal year 2026-2027 containing the increase, which would generate an extra $2.48 million for the new Weber County city. It would boost property taxes on a home worth $1.22 million, the average, from $104.85 to $640.51, up $535.66. The action followed a truth-in-taxation hearing on the issue on Aug. 11, but the increase — the largest this tax cycle in percent terms in Utah — is hardly a done deal.
Because of a missed deadline last January in the incorporation process that’s outlined in state tax code, the Utah State Tax Commission said the city couldn’t pursue the increase. The city sued; a judge upheld the Tax Commission’s determination, and city officials are now appealing to the Utah Supreme Court, which has yet to weigh in.
Given the uncertainty, City Councilwoman Kay Hoogland said Wednesday that city leaders have an alternative budget plan if the Supreme Court sides with the Utah Tax Commission. “We have already adopted that plan B. We call it the skinny budget,” she said.
Instead of new property taxes, the alternative proposal would rely in part on a new transportation utility fee assessed on city households, which could be used only for road projects in the expansive, sparsely populated locale on the Wasatch Back. The funds generated, though, would be less than what the proposed 512.6% property tax hike would bring in.
“It’s not a flush budget. It’s not an ample budget. It’s what we, in our best judgment, thought would be necessary to serve the city’s needs at this stage,” she said.
The council members voting for the budget containing the hike of up to 512.6% were Hoogland, Don Hickman and Tia Shaw. Peggy Dooling Baker and Chad Booth voted against it.
The need for such a large tax hike stems in part from “artificially inflated” sales tax projections contained in a feasibility study that precipitated the city’s formation, which were based on higher-than-normal spending patterns during the COVID-19 pandemic. Moreover, according to an informational document prepared by the city, the study underestimated the startup costs of launching a new locale.
“The combination of lower-than-projected revenue and higher-than-projected expenses is what created the funding gap the council is now addressing,” reads the document.
Many locales, school districts, and other taxing entities are wrestling with notable tax hike proposals, including Roy in Weber County and Eagle Mountain in Utah County. Residents of both cities are pursuing referendums to halt tax hikes in their locales.