Actual Value, Assessment Rate, and Mill Levy
Property taxes are calculated using the actual property value, the assessment rate, and the mill levy using the formula: Actual Value x Assessment Rate = Assessed Value x Mill Levy = Taxes Due. More information is available in the Calculating Your Property Taxes flyer. For example:
For a residential property with an Actual Value of $350,00, an Assessment Rate of 7.15%,
and a Mill Levy of 86, there will be $2,152 in taxes due.
Currently, assessed property values are calculated by multiplying the actual value by 7.15% for residential properties, and by 29% for non-residential properties. These percentage numbers are determined by state law.
Tax Rate or Mill Levy
The Tax Rate and Mill Levy are two different ways of expressing the same information. The Tax Rate is expressed as a percentage, while the Mill Levy is expressed in mills (1 mill = $1 of property tax for every $1,000 of assessed value)
Generally, properties are affected by several taxing entities. Each taxing entity determines what revenues will be required to operate during the coming fiscal year. The required revenues are then divided by the total assessed value to determine the tax rate/mill levy for each entity. To determine the total tax rate for a property, add the tax rates for each entity that impacts a property.
Mill Levy Example:
- The assessor determines the total assessed value for the county as $100,000,000.
- The Board of County Commissioners determines the budgeted property tax revenues needed are $1,398,000.
- $1,398,000 (tax revenue) divided by $100,000,000 (assessed value) = 1.3980% Tax Rate, or 13.98 Mills (Mill Levy)
- The county tax rate is $13.98 in revenue needed for each $1,000 of assessed value