§ 103344 Tax Rate Determination

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

Key Takeaways

•The board sets the tax rate by September 1 each year.
•The rate is expressed as cents for every $100 of property value.
•The rate must be high enough to bring in the exact amount of money the board already decided it needs.

Example

A town needs $500,000 for road repairs. The county auditor tells the board that all the property in the town is worth $25,000,000.

The board will calculate a tax rate in cents per $100 so that when every property owner pays that rate, the town collects the $500,000 it needs.

How to Calculate

Required Rate (cents per $100) = (Desired Revenue × 10,000) ÷ Total Assessed Value

Find the amount of money the board said it needs (Desired Revenue).
Find the total value of all property the auditor reported (Total Assessed Value).
Multiply the Desired Revenue by 10,000.
Divide that product by the Total Assessed Value. The answer is the tax rate in cents for every $100 of property value.

Town needs $500,000; total property value is $25,000,000.

Result: Rate = (500,000 × 10,000) ÷ 25,000,000 = 5,000,000,000 ÷ 25,000,000 = 200 cents per $100 (which is $2 for each $100, or a 2% tax).

Key Takeaways

•The board sets the tax rate by September 1 each year.
•The rate is expressed as cents for every $100 of property value.
•The rate must be high enough to bring in the exact amount of money the board already decided it needs.

Example

A town needs $500,000 for road repairs. The county auditor tells the board that all the property in the town is worth $25,000,000.

The board will calculate a tax rate in cents per $100 so that when every property owner pays that rate, the town collects the $500,000 it needs.

How to Calculate

Required Rate (cents per $100) = (Desired Revenue × 10,000) ÷ Total Assessed Value

Find the amount of money the board said it needs (Desired Revenue).
Find the total value of all property the auditor reported (Total Assessed Value).
Multiply the Desired Revenue by 10,000.
Divide that product by the Total Assessed Value. The answer is the tax rate in cents for every $100 of property value.

Town needs $500,000; total property value is $25,000,000.

Result: Rate = (500,000 × 10,000) ÷ 25,000,000 = 5,000,000,000 ÷ 25,000,000 = 200 cents per $100 (which is $2 for each $100, or a 2% tax).

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 103344 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