SALT LAKE CITY — Over the next several weeks, various local governments throughout Utah will hold public Truth in Taxation hearings as they inform Utahns of their intention to increase property tax revenues. Many homeowners assume that higher assessments automatically generate more property tax revenue for local governments. A new public finance brief from the Kem C. Gardner Policy Institute provides useful context, explaining why that assumption is incorrect, and how Utah’s nationally recognized Truth in Taxation system keeps property tax revenues stable while requiring transparency and public input before local governments can increase tax collections.
“Utah’s Truth in Taxation system is often misunderstood because people naturally associate higher property values with higher property taxes,” said Phil Dean, chief economist and research director at the Gardner Institute. “This brief explains that property values determine how the tax burden is distributed among property owners, while local officials through a transparent public process —not rising assessments—determine whether each local government will collect additional property tax revenue.”
Key data points from the fact sheet include the following:
Rising property values do not automatically increase property tax revenue – Utah’s certified tax rate gets recalculated each year to offset increases in assessed values for existing property, keeping revenue generally flat unless local officials vote to increase it through the Truth in Taxation process. This distinguishes Utah’s system from those in many other states and helps prevent automatic revenue windfalls from value appreciation alone.
Local governments must provide public notice before increasing property tax revenue – To collect additional revenue beyond newly created property (“new growth”), taxing entities must issue parcel-specific and public notices, then hold a public hearing before adopting a higher tax rate. The process gives taxpayers advance notice and an opportunity to participate in local funding decisions.
Individual property tax bills can still rise—even when total revenue remains unchanged – Property values do not increase uniformly across neighborhoods or property types, so the tax burden shifts among property owners based on how their property’s value changes relative to others. As a result, some taxpayers may pay more while others pay less even when the taxing entity does not collect additional revenue.
Utah’s property tax rates have steadily declined over time – Since 1994, statewide property tax rates have fallen by approximately 42.7% as property values have grown, including a decline of more than 20% between 2020 and 2025. The long-term trend reflects the automatic rate adjustments built into the Truth in Taxation system.
The full brief is now available online.
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The Kem C. Gardner Policy Institute serves Utah by preparing economic, demographic, and public policy research that helps the state prosper. We are Utah’s demographic experts, leaders on the Utah economy, and specialists on public policy and survey research. We are an honest broker of INFORMED RESEARCH, which guides INFORMED DISCUSSIONS, and leads to INFORMED DECISIONS™. For more information, please visit gardner.utah.edu or call 801-587-3717.
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