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.