Calculating Property Tax (COPY 1)

Calculating Assessed Value


To calculate assessed value, multiply the appraised value by one of the following state assessment rates:

Property Type

Assessment Rate

Agricultural buildings

   25%

Agricultural land*

   30%

Commercial / industrial

   25%

Not-for-profit

   12%

Public utility

   33%

Residences on farm home sites

   11.5%

Residential

   11.5%

Vacant lots

   12%

All other rural and urban property

   30%


*By law, agricultural land is not valued at fair market value, but upon its productivity and use.

If the fair market value of your home is $150,000, and the assessment rate is 11.5%, this would mean the assessed value would be $17,250 ($150,000 x 0.115 = $17,250).


Calculating Your Tax Amount
Mill levies set by taxing groups like school districts, cities, and counties are used to calculate your taxes. Let's assume the combined mill levy has been set at 120 mills. Multiply the assessed value of your property ($17,250) by the mill levy (120 mills or 0.120). The answer is $2,070, which is your tax amount.

Example

Market value of home

$150,000

Assessment rate - Residential (11.5%)

x 0.115

Assessed value (AV)

$17,250

Mill levy ($120 mills per $1,000 AV)

x 0.120

Amount of taxes

$2,070

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