1 / 22

Property Tax Administration

This comprehensive guide explores the intricacies of property tax calculations within various districts, including fire, school, and waste management districts. It covers essential concepts such as tax base computation, budget setting, intergovernmental aid subtraction, and the calculation of mill rates. The document explains the difference between statutory and effective property tax rates, assessment methods, and the implications of rate-based and levy-based systems. Additionally, it addresses thought-provoking questions related to changing property values and their effects on tax obligations.

federico
Télécharger la présentation

Property Tax Administration

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tax Districts District Tax Calculation Assessment Calculation of Tax Obligations Property Tax Administration

  2. Fire Districts

  3. School Districts

  4. Waste Management Districts

  5. District Tax Levy • Compute tax base (add up the assessed values of all the taxable real property in the district = $100 million). • Set the budget ($2.5 million) • Subtract intergovernmental aid ($1M) • Divide the remainder ($1.5 million) by the tax base ($100 million) to calculate the statutory property tax rate = .015 or 1.5 percent or 15 mills

  6. Mill Levy Property tax rate. A mill is equal to $1.00 of tax for each $1,000 of assessment, or .1 percent. To calculate the property tax multiply the assessment of the property by the mill rate and then divide by 1,000. For example, a property with an statutory assessed value of $500,000 located in a municipality with a mill rate of 10 mills would have a property tax bill of $5,000.00 per year

  7. Rate Based Systems • Specify a Mill Rate (or Percentage Tax Rate) • Apply to tax base • Fit budget to anticipated revenues • Propose a change in tax rate consistent with spending plans

  8. Rate Based Systems • Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) • Apply to tax base • Fit budget to anticipated revenues • Propose a change in tax rate consistent with spending plans

  9. Rate Based Systems • Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) • Apply to tax base ($100M = $1.5M) • Fit budget to anticipated revenues • Propose a change in tax rate consistent with spending plans

  10. Rate Based Systems • Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) • Apply to tax base ($100M = $1.5M) • Fit budget to anticipated revenues ($2.5M = $1M + $1.5M) • Propose a change in tax rate consistent with spending plans

  11. Rate Based Systems • Specify a Mill Rate (or Percentage Tax Rate, e.g., 15 or 1.5%) • Apply to tax base ($100M = $1.5M) • Fit budget to anticipated revenues ($2.5M = $1M + $1.5M) • Propose a change in tax rate consistent with spending plans (if necessary)

  12. Assessment • True market value • Method of comparables • Econometric (hedonic pricing) assessment* • Book (acquisition cost minus depreciation), replacement cost, cash flows Residential Real Estate Commercial Real Estate *Accuracy is a function of frequency

  13. Proportional Assessment • Usually expressed as as proportion of market value • Often used to discriminate in favor of certain property types • Other statutory standards Oregon = AV 1994 plus 3% Per annum = 1.65(AV 1994), or MV, whichever is less, in FY2011

  14. Statutory vs Effective Property Tax rates • Property tax bill is calculated by multiplying the sum of tax rates that apply to the property by the property’s AV. • The effective tax rate is found by dividing the tax bill by MV

  15. Statutory vs Effective Property Tax rates • Property tax bill is calculated by multiplying the sum of tax rates that apply to the property by the property’s AV. • The effective tax rate is found by dividing the tax bill by MV (a better measure might take account of the MV of all the property in a jurisdiction and not just the taxable property).

  16. Thought Questions • In a levy-based system, what happens to tax rates if you add to the tax base? To a district’s revenues? What happens to your tax bill if your neighbor’s property increases in value and yours doesn’t? • In a rate-based system, what happens to tax rates if you add to the tax base? To a district’s revenues? What happens to your tax bill if your neighbor’s property increases in value and yours doesn’t?

More Related