Property taxes are calculated using the assessed value of the properties in the area and the mill levy. The mill levy is a method of deriving the percentage of property taxes needed by a county. This percentage amount is multiplied by the value of each property to determine tax amount.Continue Reading
The mill levy system works by taking the budget amount needed by a taxing entity in the county and dividing that by the total assessed value of all of the properties in the county. A taxing entity may include the county itself, various cities within the county and school districts. Each entity's budget needs when divided by the total assessed values results in a percentage amount, which is part of the total mill levy. When these separate percentages are added together, they the result is the total mill levy applied to determine actual individual property taxes.
The assessed value of a property is determined by the local government through property inspection. There are three ways to determine assessed value for a property. The value is determined by its sales value, its replacement value or by the amount of income that the property is capable of generating if rented. The assessed value is sent to property owners after assessments are completed.Learn more about Taxes