Small US town proposes massive 225% property tax hike, highest increase in state: What it means for your wallet?
Wellington
city leaders acknowledged this week that years of mismanagement by past officials and a massive budget shortfall have led to a moment that has drawn massive angst from residents.
Under the proposal made by Wellington authorities, the property tax on a $256,000 residence would increase from $216.41 to $704.00, which is $487.59 per year. The tax on a $256,000 business would increase from $393.47 to $1,280.00, which is $886.53 per year. A looming decision on the property tax hike was postponed on Wednesday by the
Wellington City Council
.
This town in US seeking 225% increase in tax
Residents have called the property tax increase "ridiculous", which is the highest in the entire state, leading to temperatures running high. 'Keep it respectful. I know a lot of people are frustrated," said Wellington Mayor Jack Clark before the meeting.
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Clark himself said he shared in the frustration of residents. 'Everywhere I look, I find problems," he acknowledged. On Wednesday, there was an hourslong public hearing which revealed the depth of residents' concerns over the potential financial burden they could shoulder from a hike.
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Nationwide, according to a report by Redfin, property taxes rose by nearly 30 percent between 2019 and 2024, reaching a monthly median of $250. During the public hearing on Wednesday, Wellington Mayor Jack Clark told a room packed with residents critical of introducing such a steep increase that the hike was necessary.
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"This is a pretty harsh thing to swallow," Clark said, as reported by Castle Country Radio. The revenues generated by higher property taxes, he said, will be used for public safety, road repairs, utilities, and other operations essential to keep the city running."
The mayor said his predecessor, Brad Timothy, started an effort to clean up the city's books, but a recent review of accounts unveiled the extent of the problems, as per Fox News.
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'We know kind of where we're at. We know we're losing about $70,000 a month,' Clark shared. Clark explained that Wellington taxes hadn't gone up since 2017, even while utility costs, city payroll, and inflation steadily rose.
'What happens if this doesn't pass?" the mayor asked. "Immediate budget shortfall is nearly $400,000.'
The new tax proposal will bring in about $375,000 for the city. If approved, the tax hike would raise city revenues to $1,646,775—still falling short of Wellington's total expenses of $1,673,325 by about $26,550, according to city officials. Without the increase, however, the city would be staring at a much larger budget gap of $400,000.
The highest increase in the state?
The 225.3 percent property tax hike requested by Wellington authorities was the highest sought by in the entire state of Utah for 2026, according to data shared by the
Utah Taxpayers Association
, an advocacy group calling for lower taxes and sound tax policy in the state.
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"Wellington is a victim of its previous elected officials not being willing to make the hard decisions," a spokesperson for the Utah Taxpayers Association told Newsweek. "While the mayor explained in his comments [on Wednesday] that those before him could have done more to prevent such a dramatic increase, he's now left having to figure out how to get the city in a good spot, financially speaking."
Wellington residents expressed their concerns over such a massive increase being suddenly implemented. 'It doesn't take me eight years to wake up to the fact I've got major, major problems," said resident Bill Barnes.
Residents like Barnes are left to worry about what their rising costs will become. 'The numbers I'm reading on my piece of paper are over $800,' he claimed. "I'm heartbroken because I thought this would be a forever house," Erin Hansen said during the meeting, as reported by Castle Country Radio. "But the reality is these taxes are going to be more than my mortgage. I can't afford to live here."
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Other residents expressed concerned about the toll the rate hike could have on trying to build up the small community of 1,600. "Nobody tries to pursue some companies to come into Wellington. That's gonna scare anyone away,' feared Ray Reddington, who has lived in the city since 1971.
Seeing the severity of the financial situation, some even grappled with the thought of life without Wellington. 'At what point are we better off just saying we can't afford to be a city and we go county?' asked resident Caleb Nelson
After nearly two hours of public comment, the city council voted to table the effort after hearing from residents, with hopes of working towards a better solution, which would need to be passed by October.
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