§ 103328 Tax Rate Determination

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

Key Takeaways

•The board must decide the tax rate by September 1 each year.
•The rate is expressed as cents for every $100 of property value.
•The chosen rate must raise at least the amount of money the board previously set as its budget.

Example

A county needs $10,000 for road repairs. The county auditor tells the board that all taxable property in the county is worth $2,000,000. The board picks a rate that will collect the $10,000.

The board looks at the total property value and chooses a cents‑per‑$100 rate that, when applied to that value, will give the $10,000 they need.

How to Calculate

Tax Amount = (Rate in cents per $100 ÷ 100) × Property Value

Find the rate the board set (in cents per $100).
Divide that rate by 100 to turn cents per $100 into dollars per $1.
Multiply the result by the total property value to get the tax amount.

The board sets a rate of 5 cents per $100 and the total property value is $250,000.

Result: Tax Amount = (5 ÷ 100) × 250,000 = 0.05 × 2,500 = $125

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. 1974, Ch. 502.)

Key Takeaways

•The board must decide the tax rate by September 1 each year.
•The rate is expressed as cents for every $100 of property value.
•The chosen rate must raise at least the amount of money the board previously set as its budget.

Example

A county needs $10,000 for road repairs. The county auditor tells the board that all taxable property in the county is worth $2,000,000. The board picks a rate that will collect the $10,000.

The board looks at the total property value and chooses a cents‑per‑$100 rate that, when applied to that value, will give the $10,000 they need.

How to Calculate

Tax Amount = (Rate in cents per $100 ÷ 100) × Property Value

Find the rate the board set (in cents per $100).
Divide that rate by 100 to turn cents per $100 into dollars per $1.
Multiply the result by the total property value to get the tax amount.

The board sets a rate of 5 cents per $100 and the total property value is $250,000.

Result: Tax Amount = (5 ÷ 100) × 250,000 = 0.05 × 2,500 = $125

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 103328 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