By JENNIFER BURKE
The city of Pleasant Grove just made history. It is the first city in Utah to charge new home and business owners an interim service fee.
The City Council approved the new tax to help cover the cost of city services that are provided during the time new property is under construction and before it is on the Utah County tax rolls.
“The police are often called out during the construction of homes because of vandalism and theft that often occur at construction sites,” said Charmaine Childs, city recorder.
Under the old law, new home or business owners were not subject to paying property tax until after construction was complete, Childs said.
“The interim service fees will be charged as an adjusted property tax that is paid up front,” Mayor Ed Sanderson said.
The fee is based on when construction is done and the size of the structure, Childs said.
An example of the interim service fee on a single family home is $110 for the year if the home is completed the first week in January. The charge is then calculated at a lower rate each week of the year thereafter.
The fees will go into a general fund to be used for anything in the general fund such as library, police, fire, recreation, and streets,” City Councilmember Jim Danklef said.
“These interim fees will only help the city. If services are being rendered to residence from the time construction starts on their home, then they should also be charged from day one to pay for those services,” said Jeffrey Matthews, Pleasant Grove resident.
According to Childs, these fees protect not only the city but its residence as well.
“In a sense, you’re paying a portion to become part of the community,” Childs said.
