Bluff Town Council seeks support of new property tax increase

Over the past month, the Bluff Town Council approved a fire ban and continued conversations regarding a Truth in Taxation effort.
Residents of Bluff attended a budget open house on May 19, organized by the Bluff Town Council and town staff to provide an informal presentation and opportunity for residents to engage on questions related to the budget and in particular a proposed property tax increase as part of Truth in Taxation.
Town manager Erin Nelson said that property taxes currently represent about five percent of the town operational budget, while visitor related taxes including resort, transient room tax and sales tax account for 35 percent of the budget. Nelson adds grants have been a major revenue driver, but some of them are being spent down.
City staff also shared ongoing expenses for the town including full-time staff, roads funds, maintenance at the Bluff Rural Innovation and Civic Center (BRICC formerly the old Bluff Elementary school), audit services, and other items.
Mayor Josh Ewing said Utah’s revenue-target system, rather than rate-based system, means property value increases do not increase town revenue. He notes inflation has risen by 23 percent since 2020 so the town’s property tax revenue has lost that amount in purchasing power.
Additionally, taxable property values have grown by over $30 million in that time frame, but the town still collects just $30,000.
The town’s current property tax rate trailing others in the state. Moab’s is 300 percent higher and Monticello’s is 200 percent higher. Ewing said the tax represents just five percent of Bluff’s operational budget, compared to 15 percent for some comparable towns.
The proposed property tax increase would generate an additional $50,000 in revenue. This would be earmarked for emergency services, with $40,000 set aside for a part-time emergency services administrator.
The tax rate for a primary residence valued at $500,000 would increase by $225 per year, while a $1 million business property would increase by $1,366 per year.
The city also says the funds would be used for a part-time emergency services administrative position that would handle admin and maintenance roles, including managing cooperative agreements with the Utah Division of Forestry, Fire and State Lands, recruit volunteers for EMS and fire and assist with grant writing for emergency services. The tax increase would also support additional equipment.
During public comment at a May 19 meeting, the council heard from homeowner and volunteer firefighter Gary Lichtenstein. He shared his opposition to the $50,000 property tax increase. Lichtenstein said $40,000 is too much money to spend on the emergency services  administrative position and too little to address operational shortfalls.
Lichtenstein also highlighted the town of Bluff generates 16 percent of the TRT tax collections in San Juan County. He suggested the county look at recently approved state provisions that allows the county to use TRT funds for EMS and search and rescue. This could shore up the budget related to emergency services in Bluff.
At the June 2 meeting, members of the Bluff Town Council heard opposition in public comments. Former council members Linda Sosa and Luanne Hook both suggested the town use existing surplus rather than taxing residents during a tourism downturn.
Sosa pointed out that EMS and fire services are currently supported by the county and expressed concern about the lack of a job description for the proposed position. 
Former Mayor Ann Leppanaen also urged council to be deliberate, pointing out that commercial businesses were hit hard by tax appraisals two years ago.
Other residents raised concerns about the impact of the tax on struggling businesses and suggested finding the funds through other methods. 
In all, seven residents spoke out against the proposal at the June 2 meeting. The council also committed to reviewing over 25 pages of written submissions before a work session.
One resident, business owner and volunteer firefighter Kate Aitchison, spoke in favor of the proposal. 
Aitchison argued that investing in the position is crucial for the town’s future, noting that government regulations have made volunteerism more complex, necessitating a paid position to handle administrative burdens and ensure the emergency services are provided in perpetuity.
While a final vote on the budget is expected in two weeks, council emphasized a separate “Truth in Taxation” hearing will be required in August before any tax increase is finalized.
At their June 2 meeting, members of the Bluff Town Council passed an ordinance banning open burning within town boundaries through October 31.
The town council also received a report on efforts to acquire 1.84 acres of land adjacent to the town cemetery from the Southwest Heritage Foundation at around $10,000. No action was taken on the item.
In other items at a May 12 meeting, members of the Bluff Town Council voted to transfer road ownership to the town classified as class C roads including Copper Cliffs II Roads “North Mesa View Road”, “South Mesa View Road”, “Prickly Pear Lane” and the 8th West alley.