Your Property Tax Notice Shouldn’t Come With Homework
During the Legislature’s October Revenue and Taxation Interim Committee meeting, lawmakers discussed ways to simplify Utah’s property tax notices. The discussion was well-intentioned. Committee members and the Tooele County Auditor, who was asked to develop an initial proposal, were trying to make the tax information sent to property owners clearer and easier to understand.
However, some of the ideas presented missed the mark when it comes to what actually benefits taxpayers.
Each summer, Utah property owners receive a property tax valuation notice that informs them of their property’s assessed value. The notice also includes a detailed breakdown of how much each taxing entity is charging them, information about any proposed tax increases and associated Truth in Taxation hearings, instructions for appealing a property valuation, and information about applying for property tax relief.
Is that a lot? Yes. Does it put a significant amount of information on a single notice? Absolutely. But should we replace that notice with a postcard directing taxpayers to a website to find the information themselves? Absolutely NOT.
One recommendation presented to the committee was to consider following Colorado’s approach to property tax notices. According to the Tooele County Auditor’s presentation, Colorado sends homeowners an abbreviated valuation postcard, with the full notice available online or by mail upon request. Homeowners can also elect to receive the longer notice in the mail.
In other words, rather than receiving all the information directly, taxpayers would have to take additional steps to find important details about their property taxes.
I find that troubling for several reasons.
If I had my way, when you opened your property tax notice, you would pull out a sheet of paper that unfolded from your hand all the way to the floor, with layer after layer spilling out to reveal everything your tax dollars are paying for. You could see exactly where your money was going and review each expenditure, one by one.
Of course, that idea is completely unrealistic and a little ridiculous. But it illustrates an important point.
When taxpayers receive their property tax notices, the Association hopes they have a reaction to the amount of money they are being asked to pay. We want them to look at that notice and see exactly who is taxing them, how much each entity is collecting, and whether those amounts are increasing compared to the previous year.
We don’t want taxpayers to have to embark on an online scavenger hunt to find that same information.
The property tax notice should serve as a loudspeaker driving through the streets of your community, announcing that your taxes could be going up and that you have an opportunity to speak up at an upcoming public hearing.
That is the heart of Truth in Taxation, and it is what we must protect as we consider changes to the current notice.
I’m all for efficient and effective communication. I don’t want to confuse taxpayers, and I certainly don’t want to waste their money on unnecessary mailings that serve little purpose.
But in this case, I believe it is essential that every property owner receive a physical notice in the mail that clearly explains their property’s value, who is taxing them, how much they are being charged, and what they can do if they disagree.
Taxpayers deserve to have that information delivered directly to them in the clearest and most accessible way possible.
Replacing a detailed notice with an abbreviated postcard or directing residents to a website places an additional burden on taxpayers to discover information about the taxes they are required to pay. It shifts the balance toward government and away from the very people who fund it.
Again, I recognize that this was simply a discussion during an October interim committee meeting at the Capitol. But these meetings are where ideas, both good and bad, begin to take shape and eventually become legislation.
Taxpayers should let their elected officials know that they want complete, understandable property tax information delivered directly to their homes.
After all, government should be accountable for explaining how much it takes from taxpayers, not taxpayers responsible for tracking down the explanation.
That’s one of the most important ways we can ensure government works for the people, not the other way around.