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 the figure resulting from 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 players:

Taxpayers (You; me; ABC Company; corporations, etc.)
and
Taxing districts (Fire Departments, Schools, Cities, Counties)

We need to know only one piece of data from each player:

Taxpayers The value of their parcels             $1,000,000.00
Taxing districts Their budget                          $100,000.00

The levy process is very easy and quite simple:

The amount of money needed by the taxing

district's budget                                            $100,000.00
is divided by the value of all the taxpayers'           divided by

parcels in their district                                   $1,000,000.00

This equals the tax rate for the district.            = $10.00 per M

Each taxpayer then pays taxes on:

The value of the parcels belonging to him/her      $100,000.00
multiplied by                                                   multiplied by
The tax rate for the district.                         $10.00 = $1000.00

The taxes are collected and given to the district and the process is done.