Dodging Truth-In-Taxation With Municipal Power Rate Manipulation (Kaysville, Bountiful)

Last year, Kaysville residents successfully blocked the city from using its power department to overcharge them on power and pocket the excess money in city coffers.  The same practice continues in other Utah cities with their own power generation departments (notably, Bountiful City). Cities engaging in this behavior benefit in two ways. First, cities can, and do, falsely claim that they keep taxes low (power rate manipulation cloaks the true tax burden). Second, they avoid scrutiny from legally required truth-in-taxation hearings (instead, they just increase power rates or customer charges). Now that Kaysville City can’t hide behind the power department, the uncomfortable truth of actual tax burden is emerging (Utah town proposes 102% property tax hike):

A proposal on the table in one Utah town could end up doubling property taxes. That proposal in Kaysville would increase property taxes by 102 percent. City leaders say the tax hike is necessary to counter a ballot initiative last year, known as Prop 5. In November, voters restricted Kaysville from using money from the city-owned power company for general fund expenses. “There is no public process there, there is no transparency,” Gregory Frank, a supporter of Prop 5 told ABC 4 Utah’s Kim Johnson last April. “What we’re trying to do is keep Kaysville city from circumventing truth in taxation laws.”

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One thought on “Dodging Truth-In-Taxation With Municipal Power Rate Manipulation (Kaysville, Bountiful)

  1. Pingback: Bountiful City’s Fallacious City Power “Dividend” | Utah Rattler

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