HOW ARE PROPERTY
TAX LEVIES ESTABLISHED?
The state constitution, statutory levy limits set by the legislature
and excess levies approved by the voters are used to calculate
the total property tax levy.
The tax
rate on your property is calculated by dividing the dollar amount
required for the taxing district by the total value of property
within the district and then adding up the rates of the various
districts in which your property is located.
The assessed
value of your property multiplied by the combined rate produces
a tax amount which is your fair share of the total property
tax levy in your area.
THE SIMPLE LEVY PROCESS
The levy process has two
main participants:
Taxpayers (You; me; ABC Company; corporations,
etc.) and
Taxing districts (Fire Departments, Schools,
Cities, Counties)
From each participant,
determine the following:
Taxpayers The value of their parcels
$ 1,000,000.00
Taxing districts Their lawful budget
$ 100,000.00
The levy process, in theory,
is simple:
1. The Tax Rate is calculated:
The amount of tax to be collected
$ 100,000.00
The value
of all taxable property in the district $1,000,000.00
Equals
the tax rate for the district.
= $10.00 per M
2. The Tax is calculated for each taxpayer:
The value of the parcels belonging to him/her
$100,000.00
The tax
rate for the district.
$10.00 / $1,000
To determine
their share of the property tax
= $1000.00 tax
3. The Treasurer
