Taxes aren’t the most exciting topic, but they are the backbone of how cities like South Jordan provide the services residents rely on and enjoy every day. From police and fire protection to parks, recreation, and roads, your tax dollars make these essential services possible. The City is committed to helping residents know where their money goes and why each revenue source matters.
Property Taxes
When most people think of local government funding, property tax is the first thing that comes to mind. South Jordan’s property tax rate is actually lower than more than half the other cities in Salt Lake County. For every dollar paid in property tax, the City receives just 14 cents. The rest is distributed to other taxing entities, with the largest portion (40%) going to the Jordan School District. The State Basic School Levy (15%), Salt Lake County (14%), and the County Library system (5%) round out the list of taxing entities.
Although the City receives a relatively small slice, property tax still accounts for nearly a quarter of South Jordan’s general fund revenues. That makes it a critical piece of the budget for providing services like police, fire, and parks.
Sales Taxes
Sales tax is actually South Jordan’s largest source of general fund revenue, making up about 40% of the total. The City receives a portion of the 7.45% sales tax rate collected on most purchases. Half of this local option tax stays in South Jordan, while the other half goes into a statewide pool and is redistributed based on population.
This system means population growth directly impacts how much sales tax the City receives. Between 2000 and 2010, South Jordan’s population growth far outpaced the state’s average, boosting the City’s share of sales tax revenue.
Franchise Taxes
Franchise taxes, or fees collected from (non-city) utilities, provide another important revenue stream. For fiscal year 2023-24, South Jordan collected $5.8 million from the 6% Energy Sales & Use Tax, nearly $600,000 from the 3.5% Telecommunications Tax, and just over $400,000 from the 5% Cable Television Franchise Tax.
The General Fund
Together, these revenues support South Jordan’s $68.5 million general fund. Nearly half of this fund (44%) supports public safety services like police, animal control, and fire protection. Public Works (17%) keeps streets, lighting, parks, and the cemetery maintained. General Government (16%) covers administration, finance, and legal services. The remaining funds support planning and engineering, recreation, communications, IT, and facilities.
By understanding where the money comes from and how it’s spent, residents can see how taxes directly support the services that make South Jordan a safe and desirable place to live.