Midway Citizen's Face Two Potential Tax Increases

Bonding for Open Space and Replacing the Resort Communities Tax

by Robin M Johnson

Following Steve Ferrell's report to the Midway City council on Wasatch County's open space efforts, Colleen Bonner, mayor, asked the council if they had any questions during Midway City's Open Space public hearing on Wednesday, June 28. 

Ken Van Wagoner, city council member, asked Brad Wilson, city recorder, if the projected $180.00 property tax increase on a $350.000 home to repay a $6 million bond included the other possible tax increase Midway citizens may face in the next few years, replacing the funds lost from the Resort Communities Tax in 2021. Wilson said it did not. 

Van Wagoner's concern is if the city decides to replace the projected $500,000 loss per year from the Resort Communities Tax, both tax increases together would more than double Midway City's current portion of a property owner's bill. The bond would increase a property owner's current amount by 58 percent per $100,000 value on a property, while replacing the $500,000 Resort Communities Tax would increase a citizen's current property tax bill by 64 percent. The two together total a potential increase of 122 percent over today's tax rate in just a few short years. Van Wagoner did a quick total in his head and estimated an increase of over $400. 

Midway's portion of the property tax bill, according to Brad Wilson, is currently about one percent of the total bill. Van Wagoner did a quick total and estimated an increase of nearly $400 with both taxes if the property owner in question owned a $350,000 home.

Later during the public hearing Nathan Lowry asked, "Are there limits as to how much the city can increase property taxes in one fell swoop? Like is it x percent at any given time?"

Wilson said, "There is no limit in how much we can increase per year, but we do ultimately have a sealing of what we can raise our property taxes to."

Lowry said, "My understanding is that we are pretty far below that, aren’t we, now?"

Wilson said, "Yes we are."

Lyle Gertsch spoke against raising property taxes to pay for an open space bond. "I think that the taxes are high enough, we’ve bonded for several things in our community, I have supported some of those things, I was on the committee that helped build the new High School. I totally supported the swimming pool. I totally support the improvements that have been made in our community and I’d like to see our community improve. But I do not believe in unnecessary debt. I think … there are other ways to keep open space, without taxing and increasing the taxes."

Gertsch said many of our new neighbors can afford the property tax increase. "There’s a lot of people in Midway who have come, they can afford it. He said many are very rich and money is no object. The attitude is 'You’re going to tax us next, we don’t care.'  

Further Gersch said, "There are families that can’t afford more tax. I don’t think that it’s wise to go into debt for something like this, I think there’s other ways to keep the open space."

Gertsch pointed out property values have soared and made Midway a rich community. Along with his point it is also important to note that as property values have increased, so have the taxes a home owner must pay on his property. Many people's homes have quadrupled in value since the early 1990's and their property taxes have followed suit. 

 To some it is only pennies a day to bond for open space, others may have to move from a community

their family has lived in for generations because they can no longer afford their property taxes..

Photo credit: Pennies, by slcgkcg, Flickr, link to photo, https://www.flickr.com/photos/slgc/6286669386/

Beth Lawrence spoke in favor of raising property taxes. "I have owned a home in Midway for nineteen years and as a home owner and a tax payer I would be totally willing to spend pennies a day in extra taxes to preserve Midway open lands and so, I know that there are concerns from people with having their property taxes raised but I would suggest that when we preserve and protect and honor what we have here, beautiful, scenic vistas, everything that everyone already knows that makes Midway special, when we preserve that instead of completely developing and ruining this little town our property values are going to go up, they already have, because it’s such a beautiful place to live. So I think that would be one way to look at, well, my property taxes may go up, but my property values are going to go up to because we are preserving our precious Midway. 

Lloyd MacIntosh said, "I’m not against bonding, there are people in the valley, though, that I know it would significantly impact their lifestyle if we bond and we double their property tax." 

Finally, Natalie Streator talked about property taxes on her 35 acres. "About twenty years ago I bought 35 acres (it was described as 38 which gives you an idea of how horribly the surveys have been done around the valley) But that was a long time ago, that was when my alfalfa field was not something you needed to do after you won the lottery, you could actually do it fairly simply. Let me tell you what’s fairly simply. I provide my neighbors with open space for $63,000 a year."

When it comes to property taxes there are so many other entities that can raise their tax levy's that need to be taken into consideration as Wilson outlined in his presentation to the city. (See "Should Midway Bond for Open Space?" there is a link in the right column.)  Also the school district funds new schools through bonding. According to city leaders there is already talk of a second high school for the valley. Currently Midway Elementary is the oldest school in Wasatch County School District, built in 1975 and added to in the 1990's. 

The final article in this series will be the city council's comments.