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.

This is an illustration only, The steps for determining the total assessed value of a district or the actual amount of taxes the district is permitted to levy can be quite complex.

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

 Island County Assessor ©