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Statute provides that the actual value of property is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate,” and the resulting value is called the “assessed value.” The assessment rate is 29 percent for all properties except residential. With the repeal of the Gallagher Amendment in 2020, the residential assessment rate was frozen at 7.15%. While the rate is set in statute as 7.15%, it has been temporarily reduced to 6.95% for 2022 and 2023 tax years.
Your property taxes are calculated by multiplying the mill levy or tax rate by the assessed or taxable value of your property. Please keep in mind that tax rates are not finalized until December of each year and are subject to change.
The actual value of Mr. Brown’s home is $400,000. The Notice of Valuation shows the current assessment percentage is 6.95 percent.
Actual Value x Assessment Percentage = Assessed Value
$ 500,000 Actual Value x 6.95% Assessment Percentage = $ 34,750 Assessed Value
To determine the property tax, multiply the assessed value times the decimal equivalent of the total mill levy. A mill is equal to 1/1000 of a dollar. A tax rate is the mill levy expressed as a percentage. Thus 98.42 mills = 9.842 percent or .09842 as the decimal equivalent.
If Mr. Brown’s assessed value is $34,750, his taxes will be:
Assessed Value x Mill Levy = Taxes
$ 34,750 Assessed Value x .09842 Mill Levy = $ 3,420.10 Taxes
The actual value of Ms. Green’s vacant land parcel is $150,000, and the assessment percentage is 29 percent.
Actual Value x Assessment Percentage = Assessed Value
$ 150,000 Actual Value x 29% Assessment Percentage = $43,500 Assessed Value
To calculate the property tax for Ms. Green’s land, multiply the assessed value times the decimal equivalent of the total mill levy. A mill is equal to 1/1000 of a dollar. A tax rate is the mill levy expressed as a percentage. Thus 98.42 mills = 9.842 percent or .09842 as the decimal equivalent.
If Ms. Green ’s assessed value is $43,500, her taxes will be:
Assessed Value x Mill Levy = Taxes
$ 43,500 Assessed Value x .09842 Mill Levy = $ 4,281.27 Taxes