This Utah City Grew 61%—Now, Homeowners Face a Major Property Tax Hike

For 15 years, Ivins, UT, grew—fast. Nestled in the red rock country just north of St. George and 30 miles from the Nevada and Arizona borders, this once-sleepy corner of Southern Utah has exploded in population, nearly doubling from 6,800 residents in 2010 to roughly 11,000 today.

But while the number of people has grown by 61%, property tax rates have stood still. Not a single hike in over a decade and a half.

Now, with inflation climbing and city services stretched thin, Ivins officials are proposing a bold fix: a 34% property tax increase to plug a $540,000 budget gap. For the average homeowner, that would mean paying about $122 more per year.

But for an area where the median household income is $72,000, even modest increases like this one can sting. That’s why some residents are arguing the burden shouldn’t fall on them—instead, they point to the $2 billion resort just down the road to help carry the load.

Why more residents doesn’t always mean more revenue

At first glance, Ivins’ booming population should have been a boon for the city’s budget. 

But the city hasn’t cashed in because of Utah’s Truth in Taxation law. The law requires property tax rates to automatically adjust downward as property values rise, ensuring that local governments collect the same total dollar amount year after year, unless they go through a public hearing process and formally vote to raise taxes.

The paradox is clear: More residents means more need—more roads to maintain, more emergency calls to respond to, more parks to service, and more staff to hire. But without a tax rate increase, Ivins is serving 61% more residents with nearly 70% less purchasing power due to inflation alone.

And yet, there’s been no hikes for the past 15 years.

Ivins Mayor Chris Hart says the city has been able to make do by decisively using COVID-19 relief funds and having some employees double up on responsibilities, among other temporary fixes.

But now, they’ve reached a breaking point, he says. Their proposed 34% property tax hike would raise an additional $860,000, which is enough to fill the current budget gap and fund essentials like police vehicles, stormwater infrastructure, and park maintenance staff.

Officials frame the move as a long-overdue correction after 15 years of holding the line, but some residents are still pushing back.

The big debate: Raise taxes now or wait for development?

At the center of Ivins’ property tax fight is a gleaming promise on the horizon: Black Desert Resort, a $2 billion luxury development with golf courses, hotels, restaurants, and retail that’s expected to transform the area’s economy.

Dillon Hurt, a candidate for City Council and an opponent of the proposed tax hike, says the city should hold off. Once Black Desert is fully built out, he notes, it will generate an estimated $57 million in room taxes and $33 million in sales in the first 40 years of operation—more than enough to fill the current budget gap without raising costs for homeowners.

But Hart argues that’s a risky gamble. For one, the facility isn’t complete yet.

“There’s some folks who mistakenly think that we could just wipe out property taxes altogether because we have this big business there,” the mayor says. “Not quite true, but they will certainly provide sufficient revenue for us to be able to go for a period of time without having to go through this process again, maybe indefinitely.”

In the meantime, the city has urgent needs.

It’s a debate that resonates far beyond Ivins: How can growing cities collect the revenue they need to keep pace with inflation and service new residents without putting undue strain on the residents that have always called the city home.

The great property tax debate

Across the country, cities are grappling with the same uncomfortable question: Should they raise property taxes now to meet growing needs—or wait and hope future development brings in enough revenue to cover the gap?

What makes Ivins unique, though, is that taxpayer advocates and many residents themselves favor the hike. The overwhelming sentiment: It’s been 15 years, after all.

City Council member Mike Scott even defends the Truth in Taxation law, which has stunted the city’s ability to keep up with inflationary pressures.

“It is an excellent safeguard,” he said in an email. “It simply means cities have to present their case for why an increase is needed, rather than have it happen automatically. I believe that is the right way to do things.”

And the City Council has certainly put in the work to get the city on board, hosting a series of “talkabouts” around town to educate community members about Truth in Taxation and the reasons behind the increase.

But the hike is coming at a cultural moment when city and state governments are being put on trial for their use of taxpayers’ dollars. Ivins might have an ace up its sleeve, though.

“Ivins is a remarkable little city, and it’s been a very, very well-run city for the entire time that I’ve at least been close enough to see,” Hart says.

The frugality and attention to detail that have allowed this growing city to go without a rate hike for 15 years might pay off if Hart can land the proposed 34% tax increase amid a national climate that’s extremely resistant—even hostile—to property taxes.

With a public hearing set for Aug. 14, interest is running high and the outcome could shape how other fast-growing cities across the country confront the crisis of inflation-choked budgets.