Monticello City property owners may see an 11.25 percent increase in their property taxes in November. The City is proposing the increase and it will be the topic of a truth-in-Taxation hearing on August 8 at 7:30 p.m. at the Monticello City office.
City officials state that the increase is necessary because of increased costs. The proposed tax increase would generate an additional $14,923 a year in property taxes for the City.
The City tax on a $100,000 home would increase $15.13 a year, from $151.25 to $166.38. Similarly, the tax on a $100,000 business would increase $27.50 a year, from $275 to $302.50.
“This would increase the property tax to the rate that city residents were paying in 2004,” said City Manager Trent Schafer. The increased revenue would be created because of the increased value of properties in the City.
In 2004, the adjusted value of properties in the City of Monticello was $38.8 million. That figure has increased to $45.4 million at the most recent assessment.
In addition, the city will lose the .5 percent resort community sales tax at the end of the current fiscal year. The community can no longer meet the required percentage of motel rooms that is needed to earn the resort city designation. The sales tax is budgeted to generate $85,000 in revenue for the city this year.
Schafer states that costs have increased in recent years and that the City has to find a way to meet expenses. “We hope people can see that this (resort sales tax) is going away so we have to come up with new ways to generate revenue.”
Th City is in the process of completing or beginning a number of projects, including rebuilding the water collection system, a new fire station and maintenance shops, parks and recreation, and completing the Southeast Utah Welcome Center.
In other city business, the Council will consider a proposal on August 8 to sell approximately 24 acres of land adjacent to the Hideout Golf Club to developers.