The Ship has Sailed on the Law Enforcement Fee

In 2010 the Salt Lake Valley Law Enforcement Service Area instituted a police district fee for those in unincorporated Salt Lake County. This Spring, the Utah Legislature passed a bill prohibiting user fees to pay for police services in Unincorporated Salt Lake County. The law goes into effect December 31, 2012. Without the fee, we are left with limited options to pay for police services. Before we moved forward with budgeting for future years, we wanted to hear from citizens. In June, 2011 we held 8 open houses. The details shared and available options are included in this Open House Brochure.

At the open houses, the overwhelming feedback we received is that the community supports local law enforcement, but would like to pay for services as part of the traditional property tax bill.

On July 19, 2011, the Salt Lake County Council unanimously endorsed a plan to replace the police fee with a property tax levy. As outlined in the Open House brochure, when a property tax is levied, most homeowners will pay less than they were paying under the fee structure.

If Riverton and Herriman annex into the Service Area, the property tax imposed by the SLVLESA will apply to property owners in those communities.

It is the intent for the unincorporated County and for Riverton and Herriman that the shift to a property tax levy be revenue neutral. The impacts for each community are detailed below.

Impact on Unincorporated Salt Lake County property owners

Under the proposed plan unanimously endorsed by the Salt Lake County Council and Mayor, Salt Lake County will transfer all property taxes currently assessed for municipal services to the SLVLESA. Additionally, the SLVLESA Board will eliminate the police fee and replace fee revenue with a property tax levy. Most homeowners will pay less property tax than they are currently paying under the police fee structure. Also, property taxes may be deductible on income taxes where fees are not. The owner of an average $220,000 home in unincorporated Salt Lake County will pay approximately $70 less per year when the fee is shifted to property tax. (This proposed savings includes estimated state and federal income tax savings, assuming average income on an itemized tax return.)

Impact on Herriman property owners

If annexed, beginning January 1, 2012, Herriman's law enforcement services will be funded entirely by property tax revenues levied by the Service Area. For example, the estimated property tax imposed by the service area on a typical property valued at $265,153 would be $277.08 for a residential property and $503.79 for a commercial property. Inasmuch as the average residential property value in Herriman is $230,140 the average Herriman homeowner would be assessed $240.50. To offset this property tax levy, Herriman City has declared its intent to eliminate its law enforcement fee. Presently, homeowners are charged $300 annually for law enforcement and businesses are charged from $324 to $1,920 annually. Thus there will be a net tax reduction for most as a result of the annexation.

Impact on Riverton property owners

If annexed, beginning January 1, 2012, Riverton's law enforcement services will be funded entirely by property tax revenues levied by the Service Area. For example, the estimated property tax imposed by the service area on a typical property valued at $288,168 would be $301.14 for a residential property and $547.52 for a commercial property. Inasmuch as the average residential property value in Riverton is $256,070 the average Riverton homeowner would be assessed $267.59. To offset this property tax levy of the Service Area, Riverton City anticipates that it will eliminate its property taxes and reduce municipal service fees, in a form and amount to be determined if annexation occurs.