§ 102339 Tax Rate Determination

The board must set a tax rate (cents per $100 of property value) by September 1, using the total property value the county auditor sends them, and the rate has to be high enough to bring in the amount of money the board previously decided it needed.

Key Takeaways

•The board sets the tax rate before September 1.
•The rate is expressed as cents for each $100 of property value.
•The rate must be high enough to collect the money the board already decided it needs.

Example

A county’s auditor tells the board that all the taxable property in the county is worth $500,000. The board had already decided it needs $5,000 in tax money.

The board will pick a rate, like 1 cent for every $100 of property, that will raise the $5,000 they need.

How to Calculate

Rate (cents per $100) = (Desired revenue × 100) ÷ Total property value

Find the total property value the auditor sent (e.g., $500,000).
Find the amount of money the board wants to raise (e.g., $5,000).
Multiply the desired revenue by 100 (5,000 × 100 = 500,000).
Divide that number by the total property value (500,000 ÷ 500,000 = 1).
The result is the rate in cents per $100 (so 1 cent per $100).

The board shall, on or before the first day of September, fix the rate or rates of taxes, designating the number of cents upon each one hundred dollars ($100), and use as a basis the value of property transmitted to the board by the county auditor, which rate of taxation shall be sufficient to raise the amount previously fixed by the board. (Added by Stats. 1971, Ch. 1374.)

Key Takeaways

•The board sets the tax rate before September 1.
•The rate is expressed as cents for each $100 of property value.
•The rate must be high enough to collect the money the board already decided it needs.

Example

A county’s auditor tells the board that all the taxable property in the county is worth $500,000. The board had already decided it needs $5,000 in tax money.

The board will pick a rate, like 1 cent for every $100 of property, that will raise the $5,000 they need.

How to Calculate

Rate (cents per $100) = (Desired revenue × 100) ÷ Total property value

Find the total property value the auditor sent (e.g., $500,000).
Find the amount of money the board wants to raise (e.g., $5,000).
Multiply the desired revenue by 100 (5,000 × 100 = 500,000).
Divide that number by the total property value (500,000 ÷ 500,000 = 1).
The result is the rate in cents per $100 (so 1 cent per $100).

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 102339 Tax Rate Determination

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References