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By Myrna Trauntvein
Times-News Correspondent

The property tax rate for Nephi City for the taxes due this fall will be .001670.

Blair Painter, city recorder, said the state tax commission and the county clerk/auditor calculate a tax rate that will generate the same property tax that was budgeted last year.

"This is one of several rates that apply to properties within the city but is the only one set by the city and the only one that generates revenues to be budgeted by Nephi City," said Painter.

Each year, the city council establishes the city property tax rate to be applied to properties within the city.

"The tax rate generates the same property tax that was budgeted last year from properties that were taxed last year," said Painter.

The tax rate is called the certified tax rate, he said.

In 2004, misinterpretation of an amended state law regarding the calculation of property tax rates caused the commission to send Utah's 29 counties artificially high rates which also had to be quickly fixed last year.

But the tax commission recalculated the complex formula and did not have a repeat of the error this year.

In 2003, a change in the way the rate is figured was instituted by the legislature. Rather than being based on the previous year's property taxes collected, the rate is now based on the amount budgeted.

The governing body of each taxing entity each year adopts a proposed rate or, if the tax rate is not more than the certified tax rate, a final tax rate for the taxing entity. The governing body shall report the rate and levy to the county auditor.

The governing body must adopt an ordinance or resolution setting the tax rate and certify that rate to the county auditor under Utah Code.

Painter said the tax rate must, by law, generate the same revenues budgeted last year.

The only increase to the city is from properties which were not on the tax roll the previous year, or which, in other words, can be attributed to new growth.

The state tax commission expects taxing entities will generate 2.5 percent to 5 percent more than last year, which is in line with inflation and population growth.