RESIDENTIAL TAX IMPLICATION
The proposed LifeCenter would be constructed by a general obligation bond, voted for by the people of Spanish Fork. If the bond passes, the bond would be paid through a property tax increase to the Spanish Fork City portion of the property tax.
The average home is Spanish Fork is valued at $202,174 and currently pays an annual property tax to Spanish Fork City of $121.31 and total property taxes of $1,325.45 paid to all taxing entities such as Utah County and the school district. The following chart shows the monthly and annual property tax increase to the average home and in other round dollar amounts:
|Assessed Property Value
||Monthly Increase on Primary Residence
||Annual Increase on Primary Residence
||Monthly Increase on Business OR Secondary Residence
||Annual Increase on Business OR Secondary Residence
Property taxes are based on the assessed value as given by Utah County. When studying the tax implication on your property be sure to review your propertys assessed value and not the appraised value. There is often a difference of 10 to 25% between these two values. You can find the County's assessed value for your property here http://www.utahcounty.gov/LandRecords/NameSearchForm.asp
BUSINESS AND SECONDARY HOME TAX IMPLICATION
The property taxes of businesses and secondary homes are calculated differently than for a primary residence. The value of a primary residence is first discounted by 45% before taxing, while a business and secondary home does not receive this discount. The above table shows the potential tax impact on busineses and secondary homes.
PROPERTY TAX IMPACT CALCULATOR
Use the following calculator to determine the increase in your property taxes, residential or business. Remember to use the Assessed Value from the County Assessor of your home or business and not the value your property might appraise for when getting a loan or refinancing.
Primary Residential Home Cost
Business Property & Secondary Home Cost
THE EFFECT OF NEW GROWTH ON PROPERTY VALUES
As more homes and businesses are built, the cost of the bond will be spread among all property owners, including all new growth. New growth is all new homes or businesses built in the city where a lesser-valued use was before.
This new growth will actually lower the amount needed from each resident and business for the annual bond payment. The first year of the property tax increase is the highest year of the tax increase because there will be more homes and businesses paying on the bond in later years.
It is also important to understand that as property values increase, the taxes generated for the bond payments DO NOT increase. The total annual amount required for the bond payment is fixed by the bond election. If property values increase, the tax rate decreases so that the taxes collected remain the same.