The ever-present discussion about taxes in South Jordan has taken another turn, with the City shining a light on how residents' tax dollars are budgeted and why every penny matters. As the nuts and bolts of city services, taxpayers' contributions keep the essential wheels turning, from emergency services to parks and public works. A recent statement from the city details the breakdown of revenue sources and their allocation within the City's budget.
South Jordan's approach to property tax stands out in the region. With a rate lower than many of its county counterparts, it might come as a surprise that the City only sees 14 cents out of every dollar paid by homeowners in this tax bracket. The lion's share, 40%, boosts the local school district while the remaining funds are split among the State Basic School Levy, Salt Lake County, and the County Library system. Despite the small cut, property taxes account for nearly a quarter of the City's general fund revenue, underpinning critical services such as the police and fire departments, according to the City of South Jordan.
When it comes to sales tax, South Jordan places its biggest bet yet. This source tops the general fund revenue list at 40%, a hefty slice of the city’s financial pie. As outlined by city officials, this is how it works: from the 7.45% sales tax on most purchases, half remains within South Jordan while the other half is put into a state pool and doled out based on population numbers. Therefore, with each new resident calling South Jordan home, the city's share of sales tax revenue increases, a trend notably seen between 2000 and 2010 when the City's population growth surged ahead of state averages.
But let's not forget franchise taxes. Essential but less talked about, these fees come from utilities that are not city-owned and feed into the fiscal machine. The City pulled in $5.8 million from the Energy Sales & Use Tax in the fiscal year 2023-24, $600,000 from the Telecommunications Tax, and an additional $400,000 from the Cable Television Franchise Tax. This revenue, although less glamorous, plays its part in keeping the City's services afloat.
All these taxes contribute to the City's $68.5 million general fund. Public safety claims nearly half of this amount (44%), with public works and general government trailing behind at 17% and 16% respectively. The remaining funds are slotted for planning, recreation, IT, and facilities work. Providing clarity on this fiscal map allows South Jordan residents to trace their tax dollars directly back to the communal benefits they reap every day.
