How is our property tax calculated?
When you purchase a home, the assessor’s office can reassess the value of your home to the current sales price (Point of Sale assessment).
(Value x Assessment Ratio x Millage Rate) – Tax Credits = Property Tax
Example of annual property tax using assumptions:
($500,000 x 4% x .2294) – $2,500 = $2,088
($500,000 x 6% x .2294) – $ 327 = $6,555
Owner-occupied dwellings are taxed at a 4% assessment ratio.
Non-owner occupied dwellings are taxed at a 6% assessment ratio.
The assessed property VALUE is limited to a 15% increase every five years. This 15% cap is removed if the property is involved in an “assessable transfer”. What qualifies as an assessable transfer?
ASSESSABLE TRANSFERS ARE:
- Sale of property
- Rent-to-Own
- Transfer to/from trusts
- Transfer by will
- Long-term lease (20 years)
- Corporate transfers
- Changes in zoning/rollback taxes
EXEMPT TRANSFERS ARE:
- Any IRS-exempt transfer
- Transfer to spouse (divorce)
- Insurance rebuilds (fire, etc.)
- Foreclosure, forfeiture, deed in lieu
- Life estates
- Tax sales
- Security interests
- If home will be your primary residence, apply for the legal residence tax ratio of 4% (only one legal residence is allowed). There is a one page form to complete and provide to the Tax Assessor’s Office with proof of residency (driver’s license, auto registration).
- If you feel the assessed value of your property is too high given the current real estate market conditions, file an appeal with the tax assessor’s office. They will listen!
- Apply for all eligible tax credits due you (disability, senior citizen, homestead exemption, etc.).
* Elected officials set the county millage tax rate. You have a say in this by VOTING.
