Council adopts 2025 certified property tax rate; staff to propose biennial truth-in-taxation ordinance

Toquerville City Council on July 1 adopted the city's certified property tax rate for 2025 and discussed a forthcoming ordinance that would require the council to review tax policy every two years.

Finance staff explained how the county computes the certified rate: the assessor's valuation increases lower the mill rate needed to produce the same revenue, and the city receives additional revenue only from new growth (new development) when the calculated rate is applied to newly added value. Staff walked through an example using last year's figures: a prior total taxable value of about $279 million, an indicated mill levy of 0.986, and new growth in the reporting year of roughly $15 million that produced an additional approximately $15,000 in tax revenue for the city when the new rate was applied.

The presentation emphasized the difference between valuation-driven changes and new-growth revenue: as individual property valuations rise, the mill rate required to generate the prior year's revenue falls; revenue only increases when there is net new taxable value (development). Staff said this background is part of preparatory work to present a truth-in-taxation ordinance this fall that would codify periodic rate reviews.

Council voted to adopt the certified tax rate for 2025: 0.000962 (mill levy notation used in staff materials). Staff said a truth-in-taxation ordinance that would require a review every two years will be brought forward as part of the city's strategic plan later in the year.