1. Property Tax and the Property Tax Rate

2. By the end of this lesson, you will be able to Define terms relating to property taxes and the property tax rate. Define terms relating to property taxes and the property tax rate. Calculate the property tax levied on property based on the assessed value Calculate the property tax levied on property based on the assessed value Calculate the property tax rate levied on property based on the assessed value Calculate the property tax rate levied on property based on the assessed value Use Excel to do all of the above Use Excel to do all of the above

3. Important Terms Assessed Rate Assessed Rate Assessed Value Assessed Value Assessor Assessor Levied Levied Market Value Market Value Mill Mill Personal Property Personal Property Property Tax Property Tax Tax Tax Tax Rate Tax Rate

4. Calculate tax levied on property pg. 251 1. Multiply the market value by the assessed rate $100,000 x 50% = 50,000 $100,000 x 50% = 50,000 2. Determine the number of 100s in the assessed value $50,000 / 100 = 500 $50,000 / 100 = 500 3. Multiply the number of 100s by the tax rate per hundred to determine taxes due 500 x 5.95 = $2975 taxes due 500 x 5.95 = $2975 taxes due

5. Dollars per $1000 Works just like Dollar per 100, except you divide by 1000 instead 100 Works just like Dollar per 100, except you divide by 1000 instead 100 $149,000 assessed value / 1,000 = 149 $149,000 assessed value / 1,000 = 149 149 x $3.80 per $1,000 = $566.20 149 x $3.80 per $1,000 = $566.20

6. Convert a mill to a decimal Mill = 1/1000 of a dollar Mill = 1/1000 of a dollar To convert mills to a decimal, divide the number of mills by 1000 To convert mills to a decimal, divide the number of mills by 1000 22 mills / 1000 =.022

7. Calculate tax rate Divide the amount of money needed by the total assessed value of the property Divide the amount of money needed by the total assessed value of the property $50,000,000 needed / $1,000,000,000 total property value =.05 or 5% $50,000,000 needed / $1,000,000,000 total property value =.05 or 5%