A bill that would study how water districts use property taxes to fund water projects passed a committee Wednesday, Jan. 25.
SB34, sponsored by Sen. Daniel McCay (R-Salt Lake City), directs the Department of Natural Resources to “study the use of property tax revenue to fund water infrastructure, treatment and delivery,” according to the bill.
It replaces McCay’s previous proposal that would terminate the property taxes that water districts like Jordan Valley Conservancy District, Weber Basin Water Conservancy District and others use to supplement their water infrastructure projects, according to the Salt Lake Tribune. That proposal was opposed by the water districts.
But SB34’s call for a study found their support. Mark Stratford, representing the Jordan Valley Water Conservancy District, said the district “appreciates [McCay’s] willingness to go through the process.”
The new bill would allow the Department of Natural Resources to help solve funding questions about water infrastructure, said McCay. And it will help find ways for Utah to cost effectively pay for water infrastructure in a way that also addresses the drought.
However, Zach Frankel, executive director of the Utah Rivers Council, wants a seat at the study.
“I am concerned about the possibility of other voices being included if the Department of Natural Resources does not let those outside the business of selling water chime in,” said Frankel, who ultimately supported the bill. The Utah Rivers Council has long said water districts’ property tax structure incentivizes wasteful water use.
McCay met both the support and concern with a promise that through this bill, the government will try to find a balance between “managing [the] state with its water issues and the appropriate growth issues that come along with a rapidly expanding population,” and make an effort to include input from a “variety of sources.”
