OGDEN VALLEY, Utah — After weeks of back and forth, a judge is allowing Ogden Valley City to move forward with the process of raising property taxes — for now.
People who live in Ogden Valley could see their taxes go up about five times what they currently pay, which city officials said is around $60 to $90 per year under the county’s unincorporated rate.
Ogden Valley City Council member Kay Hoogland said the city is just not making enough money to function, so they need to raise taxes or be forced to impose fees. She said the feasibility study released prior to incorporation showed that the city would not need a tax increase, but she said their revenue is not keeping up with projections.
On June 22, a judge granted a temporary restraining order, letting the city through the process to increase taxes, after the city filed a lawsuit against the state tax commission. Hoogland said she feels encouraged.
"Without that, our residents will face a real cut in services,” Hoogland explained. "We will not be able to issue land use permits as quickly as they need them. We will not be able to repair roads as well as they need. We will not be able to do really critical stormwater management and address some of the neglected maintenance and of the infrastructure throughout the valley."
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Hoogland said the Utah State Tax Commission did not allow them to go through the "Truth in Taxation" process because they were not a taxing entity on Jan. 1. She said they missed the deadline because they could not get official incorporation paperwork from the state on time, but they still believe that as a city, they should be considered a taxing entity.
Due to this, the city sued the state tax commission to allow them to impose a city property tax.
Hoogland said they have been preparing for either a property tax increase or cutting services and imposing fees, although they would prefer the former. She said this decision came at the right time, and she is thankful for all the residents who have been patient and willing to help.
FOX 13 reached out to the Utah State Tax Commission, but they said they cannot comment on ongoing litigation.
This is still a temporary decision, so things could change as the legal process continues.
