Next page Property Tax Administration Tax Districts District Tax Calculation Assessment Calculation of Tax Obligations

Jump to first page

Fire Districts

Jump to first page School Districts

Jump to first page Waste Management Districts

Jump to first page

District Tax Levy Compute tax base (add up the assessed values of all the taxable real property in the district = $100 million). Set the budget ($2.5 million) Subtract intergovernmental aid ($1M) Divide the remainder ($1.5 million) by the tax base ($100 million) to calculate the statutory property tax rate =.015 or 1.5 percent or 15 mills

Jump to first page Mill Levy Property taxProperty tax rate. A mill is equal to $1.00 of tax for each $1,000 of assessment, or.1 percent. To calculate the property tax multiply the assessment of the property by the mill rate and then divide by 1,000. For example, a property with an statutory assessed value of $500,000 located in a municipality with a mill rate of 10 mills would have a property tax bill of $5, per year

Jump to first page Rate Based Systems Specify a Mill Rate (or Percentage Tax Rate) Apply to tax base Fit budget to anticipated revenues Propose a change in tax rate consistent with spending plans

Jump to first page Rate Based Systems Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) Apply to tax base Fit budget to anticipated revenues Propose a change in tax rate consistent with spending plans

Jump to first page Rate Based Systems Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) Apply to tax base ($100M = $1.5M) Fit budget to anticipated revenues Propose a change in tax rate consistent with spending plans

Jump to first page Rate Based Systems Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) Apply to tax base ($100M = $1.5M) Fit budget to anticipated revenues ($2.5M = $1M + $1.5M) Propose a change in tax rate consistent with spending plans

Jump to first page Rate Based Systems Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) Apply to tax base ($100M = $1.5M) Fit budget to anticipated revenues ($2.5M = $1M + $1.5M) Propose a change in tax rate consistent with spending plans (if necessary)

Jump to first page Assessment True market value Method of comparables Econometric (hedonic pricing) assessment* Book (acquisition cost minus depreciation), replacement cost, cash flows Residential Real Estate Commercial Real Estate *Accuracy is a function of frequency

Jump to first page Proportional Assessment Usually expressed as as proportion of market value Often used to discriminate in favor of certain property types Other statutory standards Oregon = AV 1994 plus 3% Per annum = 1.65(AV 1994), or MV, whichever is less, in FY2011

Jump to first page

Statutory vs Effective Property Tax rates Property tax bill is calculated by multiplying the sum of tax rates that apply to the property by the property’s AV. The effective tax rate is found by dividing the tax bill by MV

Jump to first page Statutory vs Effective Property Tax rates Property tax bill is calculated by multiplying the sum of tax rates that apply to the property by the property’s AV. The effective tax rate is found by dividing the tax bill by MV (a better measure might take account of the MV of all the property in a jurisdiction and not just the taxable property).

Jump to first page

Thought Questions In a levy-based system, what happens to tax rates if you add to the tax base? To a district’s revenues? What happens to your tax bill if your neighbor’s property increases in value and yours doesn’t? In a rate-based system, what happens to tax rates if you add to the tax base? To a district’s revenues? What happens to your tax bill if your neighbor’s property increases in value and yours doesn’t?