Heber City residents will see an increase in property taxes in fiscal year 2027, but the 4.2% increase is slightly lower than city leaders originally planned.
City staff originally suggested a 5.2% increase in May, which was reduced to a 4.8% property tax increase earlier this month, bringing in an additional $174,000 in revenue to the city’s general fund. However, taxpayers largely opposed the increase at a Truth in Taxation hearing and asked the Heber City Council to reject the proposal.
Instead, city councilors unanimously voted to approve the lower 4.2% increase after weighing the merits of a property tax bump on Aug. 18. City Councilor Aaron Cheatwood said the increase would bolster the city’s “rainy day fund” without overwhelming city residents or increasing taxes by a large amount quickly.
The 4.2% increase would have residents with a home worth $850,000 paying an extra $14.96 per year, while the 4.8% increase would have increased property taxes for the same residents by $16.83 annually.
The city relies on U.S. Bureau of Labor Statistics data for every proposed tax increase. Heber City Finance Director Sara Nagel emphasized that the property tax hike is a “purely inflationary increase.”
City Councilor Mike Johnston said property taxes are the most “progressive” type of tax Heber City has, meaning people with wealth generally own more property and a higher-value home.
“They pay a lot more than people of small means or poor people who have modest homes and don’t pay that much,” Johnston said.
Road plowing, maintenance, cemetery upkeep, city administration, city planning, engineering and public works are all funded in part by property taxes, Johnston said. He added that small, incremental tax increases will help the city stay ahead of costs.
Heber City has increased the tax rate five times in the last 30 years. The last raise was in 2024 when property taxes were increased by 9.4%.
“I want to make the point that I know people are struggling, but we’re not the ones causing your inflation and your difficulty,” Johnston said.
He added that concerned residents should reach out to state representatives about inflation.
City Councilor Yvonne Barney expressed concern for residents facing financial difficulties. Some residents, she said, rely on one job or Social Security to make ends meet. Barney said property tax increases amplify those challenges.
“Let’s take into consideration those citizens within our community, the single mom who can’t and may be working three jobs because she can barely keep things going as well,” Barney said.
Barney also suggested incremental tax increases that keep up with the cost of living adjustment by the U.S. Social Security Administration.
“Maybe every year we do a 1.2% (increase) on our tax,” Barney said. “It may not sound like a lot of money, but over time it continues and it adds up.”