Heber City cannot move forward with a 4.2% property tax increase officials approved for fiscal year 2027. The Utah State Tax Commission prohibited the increase after notifying the city that it did not comply with a new state law.  No remedy can be made as fiscal year 2027 is already underway, a ccording to City Manager Matt Brower.  City staff unanimously voted to approve the 4.2% increase on Aug. 18. That increase would have generated about $154,412 for Heber City in fiscal year 2027. Brower said the city will now have to operate without the additional revenue.  The city will instead reverse expenditures by 4.2% for each department.  Brower said the decision from the Utah State Tax Commission cannot be appealed or protested.  “We are now into our fiscal year ‘27 budget and making adjustments and moving on,” Brower said.  It’s unclear whether a larger tax increase will be proposed for fiscal year 2028. The city relies on U.S. Bureau of Labor Statistics data for every proposed tax increase and has, historically, aligned those increases with inflation.  Heber City has increased the tax rate five times in the last 30 years. The last raise was in 2024 when property taxes were increased by 9.4%.  Brower said he is not “100% sure” if a new increase will be proposed next year, or what that amount could be.  “You could have a recession; the economy could boom. You just don’t know what’s going to take place in the next 365 days,” Brower said.  The Utah State Tax Commission notified at least eight other cities of the same issue and said that their rate increases would not be certified, according to Brower. The Tax Commission is operating under two bills adopted earlier this year intended to curb larger tax increases in state municipalities.  Brower said Heber City missed one step in the process, which included submitting a combined statement generated by Wasatch County. That’s a document that itemizes cities or entities going through Truth in Taxation.  Heber City failed to post that document on its website two weeks in advance of the tax increase.  Heber City will be “okay” without the added $154,412, Brower said.  “We run a tight ship. We have some reserves that we’ll utilize, perhaps, and keep moving forward,” Brower said.  Residents largely opposed the tax increase when it was first proposed at 4.8% in August and when it was reduced to 4.2%. The post Heber City cannot raise taxes this year as officials planned appeared first on Park Record. ...read more read less