Facts about Orem’s Property Tax

The City of Orem considered a property tax increase as part of this year’s budget to compensate for lost revenue from declining sales tax and increased expenses and obligations over the last four years.  After five public open houses, three public hearings, and much public input, the City Council approved an increase in Orem’s portion of the property tax that is half of the original proposal that was noticed. The City Council is considering cuts throughout City operations and services to make up the difference.  The information below reflects the actual tax increase that was approved on August 14, 2012.

Since this is the first general property-tax increase by the City of Orem since 1978, we understand you may have questions.  Here is some information for you to consider:

• Orem’s portion of the property tax on the average home is increasing $4.09 per month or $49.07 per year.  The average Orem home is valued at $181,000 based on information provided by the Utah County Assessor’s Office.
• Orem’s portion of the property tax on a business valued at $181,000 is increasing $7.44 per month or $89.23 per year.
• The approved amount represents a 25.29% increase in Orem’s portion of the property tax.
• Please remember that the increase only applies to Orem’s portion of your tax bill which is 18.5% of your total bill. Orem’s increase will only result in a 3.9% increase in your overall property tax bill.
• Because of a decrease in Alpine School District’s portion of the bill, the average home’s tax bill is increasing by only $2.58 per month.

Water is based on the City of Orem average residential use of 28,000 gallons per month with a 3/4 inch meter.  If a city has pressurized irrigation, a mix of 11,500 gallons of culinary water to 16,500 gallons of pressurized irrigation (secondary) water was utilized.

Sewer is based on the City of Orem average residential use of 13,000 gallons per month.

Property tax was calculated based on a home value of $200,000 (includes Orem’s increase).

How are property taxes used in Orem?

Property taxes make up only a quarter of the City’s General Fund Tax Revenue.  The General Fund supports vital community operations such as:

• Public Safety--Police, Fire, and Emergency Medical
• Recreation—Programs including Senior Citizen but not the Fitness Center
• Parks
• Streets and Traffic Management
• Planning, zoning, and building safety
• Cemetery
• Library

Wonder what life was like in Orem over 70 years ago? Read a talk written by Ray Gillman on the radio in 1939 regarding Life in Orem.