The City of Orem is proposing a targeted 7.01% property tax increase to fund the hiring and outfitting of two new police officers, a move officials say is necessary to address skyrocketing inflation and a growing daily population. The proposal, which would generate approximately $450,000, follows a period of city-wide efficiency efforts and a public hearing held on Thursday, Aug. 27, at Orem City Hall.
Funding for Public Safety
According to the City of Orem, the proposed tax increase is specifically earmarked for law enforcement. Every dollar of the increase would be used to cover the salaries, dedicated patrol vehicles, specialized equipment, and protective gear for the two new officers. Under state law, these funds cannot be used for any other purpose.
City officials noted that the increase would only apply to the Orem portion of a resident's total property tax bill, meaning it would not affect the portions collected by the school district or the county. For an average Orem home valued at $520,000, the increase is estimated to cost approximately $11.73 per year, or roughly $1 per month.
Rising Costs and Population Pressures
The city's proposal comes as officials face rising costs for essential first responder equipment. The City of Orem reported that items such as body cameras, bulletproof vests, fuel, and SCBA facepieces have all seen major price increases due to inflation.
While the city's permanent resident count has not grown significantly in recent years, officials pointed out that the daily population has reached historic highs. The city noted that the combination of tens of thousands of Utah Valley University students and nearly 42 million annual visitors to local businesses and venues means first responders are protecting a much larger population than census numbers suggest.
City Efficiency and History
The City of Orem emphasized that raising taxes is a last resort, noting that the city has only raised property taxes once in the last 48 years. Before proposing this increase, the city spent years implementing cost-reduction measures, including department restructures that saved $1.3 million, winning grants, and reorganizing departments to find efficiencies.
Since 2023, the City of Orem has secured $17.8 million in grants. Even with the proposed increase, the city maintains that its property taxes remain among the lowest in Utah County.
New Revenue Structure
The city is also considering the establishment of a Public Safety Special Revenue Fund. Under this plan, 100% of Orem's general property tax would be dedicated to funding police and fire department operations.
Officials stated this change is intended to maximize transparency and accountability while securing a stable revenue source for core emergency services. The city warned residents that if their tax notice shows a "100% increase," it does not mean their total bill has doubled; rather, it reflects the creation of this new, dedicated fund allocation.
Utah County Tax Context
The mechanics of property taxation in Utah involve several variables, including the annual local government budget, the taxable value of a property, and the final adopted tax rate. According to the Utah County Auditor, property taxes are collected by various local governments to fund essential services such as law enforcement, education, and infrastructure.
In 2025, Utah County residents paid a total of $940,440,145 in property taxes. Of that total, $120,262,639 was distributed to cities, representing 12.79% of the total distribution. The tax rate for any specific entity is determined by dividing the total estimated property tax revenue by the total taxable value within that government's boundaries.
Stability of Revenue
The City of Orem maintains that property tax is a more stable and predictable revenue source than sales tax, which fluctuates with the economy. This stability is cited as vital for emergency services that require reliable funding regardless of economic shifts.
Resident Resources
For residents seeking to understand their specific impact, the City of Orem provides an online property tax calculator tool. The city also noted that for primary residences, the taxable value is calculated at only 55% of the assessed market value.
