A recent column written by yours truly about a huge property tax inequity in Southern Utah struck a nerve, to say the least.

However, as I discovered shortly after the original column was published, the rule of taxation on second homes is actually Utah-wide.

For the record, it has been determined that (a) the owners of second homes in Utah are paying double the taxes of those who have declared primary residency; and (b) more than 90 percent seemed to agree that the setup is wrong, unconstitutional and actually discriminatory.

As stated on the web site for the Kane County Assessors office, permanent residents receive a 45 percent exemption on their property taxes while the rest of us pay the entire amount. Thus, the owners of second homes pay nearly double what permanent residents pay even though they use the services far less.

It just seems that in order to balance the taxes, permanent residents should pay 22.5 percent more while the rest of us should pay 22.5 percent less. That way, everyone is equal.

In the case of Southern Utah, at least 90 percent of those affected by the goofy setup are from Las Vegas. When you throw in the fact that the entire state enforces the inequity, it’s easy to see why a tax payer revolt could outdraw the Olympics, for Lord’s sakes.

Many owners of second homes are actually residents of Cedar City and St. George. Like the rest of us, they’re getting their pockets ripped out, too, in a sneaky agreement that has apparently been enforced for decades.

From Park City to Duck Creek to St. George and Pine Valley, there are property owners going broke after first falling in love with the state of Utah. Most are not happy once they discover they use the property only part of the time only to pay full-time property taxes while full-time residents get a 45 percent exemption.

As miffed as anyone about the current property taxes in Southern Utah, I have been shaking my head for a week trying to understand the logic related to other stories that have been brought to my attention.

I mean, I had major brain surgery in December of 1994 and the headaches I’m getting while trying to understand Utah’s property taxes remind me of that day when I awoke feeling as though someone had taken a sledge hammer to the side of my skull.

But wait, there’s more.

One very unique property valuation issue surfaced when I received an email from Cedar City CPA Bruce Hughes – a transplanted Californian who has lived in Cedar City for 17 years -- has been fighting the Iron County Assessor’s office for five years.

Hughes purchased 3 ½ acres south of Cedar City about 16 years ago. Everything was fine until prairie dogs decided to claim his land as home after being forced out of their original habitat by the construction of a drainage ditch to handle flood waters.

In short, Hughes’s land cannot be touched now because prairie dogs are federally protected, so he is handcuffed. His land is not worth much, but the county still wants to jab him with full-fare property taxes.

Then there is Ken Freeman, who lives in a small home with six acres along Highway 14 along with a small cabin in Engelstad Estates headed to Kolob. The taxes on his cabin are higher than what he’s paying for his primary residence. Again, Freeman admits that he has never disputed the taxes although like so many others now, he probably will in the future.

Believe me, there were countless others who had stories to tell, too.

In fairness, various county assessors will usually cooperate and lower the taxes if the owner takes the time to fight the issue.

However, since every county in Utah knows that the most owners of second homes and/or investment properties (a) usually don’t have time to fight the system and (b) have no idea they’re paying double anyway, this entire thing has become a great big cash cow for ever property assessor in the state.

That leads me to the rules of full disclosure in real estate. My agents never informed me that I’d be paying twice the taxes as full-time residents, and neither did my banker or escrow people. By the time this is all said and done, there are going to be nine gazillion real estate agents all over the state of Utah coming up with more excuses than a home for unwed mothers.
 

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