Vineyard's Tax Rate

Vineyard's booming economy and soaring home values have enriched homeowners and challenged the city budget due to inflation.

Utah's unique property tax system doesn't adjust for inflation; as home values rise, tax rates drop to keep revenue the same. While advantageous for taxpayers overall, it poses challenges in fast-growing areas like the Wasatch Front, where taxes don't automatically increase with property values.

For over twenty years, Vineyard has not raised property taxes. From 2017 to 2024, the tax rate in Vineyard consistently decreased, even as property values increased. However, this reliance on revenue from new construction growth is insufficient, as it does not keep pace with inflation. 

Property tax is multi-jurisdictional; Several entities, such as the county, school district, city, water district, etc., make up the total property tax cost. While Vineyard has not increased its portion, other groups have increased their portion of the tax rate during that time. Per capita buying power has declined. Between 2017-2024 movie tickets moved from $8.97 to $11.23, a 25.20% increase. Beef experienced a 31.30% increase, and housing went up by 74.22%. Fire went up 51.81%, according to Forbes and Zip Rec. 

In FY 2017, the buying power of $32,057 would be $39,808 today when adjusted for inflation. However, the current per capita measure is $37,490 for FY 2023, indicating a loss of $2,318 in buying power per capita.

Vineyard has managed its budget with conservative spending, historically spending less per resident than other cities of comparable size, allowing us to handle economic changes without major tax hikes. However, Vineyard needs to do more to keep pace with inflation to ensure financial stability.

Wednesday, June 26th, experts advised the Vineyard City Council on the intricacies of Utah's property tax system. Despite the increase in property values, Utah's certified tax rate calculation maintains revenue neutrality, meaning the city's rate adjusts to generate the same property tax revenue as the prior year. Thus, property taxes in Vineyard do not automatically increase with rising home values, and in fact, the rate has decreased as property values have soared.

Contrary to states like Montana, where property tax is based on a percentage of a home's assessed value, Utah’s system ensures stability and representation in the adjustment process. 

According to state law, the certified tax rate is adjusted annually to reflect revenue neutrality, capturing new growth. but not existing home valuation increases.

Vineyard City Council finished its initial budget process on June 26th. It met together as a council six times before the public and more frequently in smaller groups to determine a working budget for the year 2025. They then set a public hearing for the tax rate.

In addition to a fire station, many items were included in the budget, such as a cemetery, transportation funding, and a safety master plan. On August 14th, Vineyard residents will have the opportunity to learn about and speak with their elected representatives about a potential adjustment. The discussion will be whether or not to restore the 2019 rate. The proposal would set the certified tax rate to .003369 up from .002842 in 2023. A home valued at $559,000 would add about $164 per year or about $13 monthly. 

2017 0.004015, 2018 0.003957, 2019 0.003369, 2020 0.0032449, 2021 0.003329, 2022 0.002903, 2023 0.002842

Former Utah State Senator Howard Stephenson, who served as Executive Director of the Utah Taxpayers Association, highlighted the necessity of exceeding the certified tax rate through the “Truth-in-Taxation” process to recoup inflationary losses. This process allows local government officials to explain proposed budget changes to their constituents.

Growth means more demand for city services like parks, public safety, and roads. Vineyard recently approved a new fire station and team. The estimated public safety costs for FY 2024 are approximately $5.6 million. Even with a proposed tax rate adjustment, the city expects to collect only about $3.95 million, covering just 70% of these costs.

Looking to the future, Vineyard has adopted an excellent outlook by partnering with economic groups to diversify its tax base over the last few years. This strategic collaboration aims to attract various businesses and industries to the area, ensuring a more stable and robust revenue stream. 

In 2023, the city council initiated a multi-year economic strategy that has begun attracting corporate investment, yielding positive returns to bolster Vineyard’s economic strength. Collaborations with entities such as World Trade Center Utah, Development Partners, 47G, Utah Valley Chamber, and EDCUtah have brought in Huntsman Cancer Institute, Topgolf and facilitated discussions with potential corporate partners interested in establishing or expanding their  presence in Vineyard. Moreover, the planned downtown development aims to attract businesses that generate less demand for municipal services while creating business tax revenue, easing the tax burden on the residents. This coordinated effort is designed to foster balanced growth and meet the evolving needs of our community. By diversifying the tax base, Vineyard can better withstand economic shifts and continue to provide high-quality services.

Residents on fixed incomes or those experiencing discrepancies in their current tax rates can learn more about the state's programs for tax relief here.

Looking Forward, Vineyard will consider adjusting its property tax rate to maintain public safety and other essential services. Vineyard's strategic economic approach aims to attract various businesses and industries to the area, ensuring a continued outlook for a more stable and robust revenue stream. Through a combination of broadening the tax base and restoring the 2019 tax rate, Vineyard can better withstand economic shifts and continue to provide high-quality services to its residents. 

Best, Mayor Julie Fullmer