One of the least understood topics in local government and one that produces high emotions is property taxes. Many people have the wrong view on how it actually effects the real taxes they pay. We think the assessor targets our wallets. He appears crafty stating "I don't levy taxes; I only establish property value". He is correct, but we think the assigned assessment creates our tax bill. In reality, it is only part one of the formulas!
In order for Government to provide residents with essential services, it must develop and adopt a budget that supports these services. During the budget process, all income sources are identified, and then subtracted from the budget. The remainder becomes the necessary tax levy. This is the amount of money required to be raised from property tax. This tax levy is divided by the total assessment of the town. The result is the multiple per assessed thousand you find on your bill.
Two items determine the tax bill; the budget and the assessment. Remember the tax levy is established by the budget. The assessment is based on the value of the property, or market value, determined by the assessor, which is the best estimate of the resale value of these properties.
In order for Government to provide residents with essential services, it must develop and adopt a budget that supports these services. During the budget process, all income sources are identified, and then subtracted from the budget. The remainder becomes the necessary tax levy. This is the amount of money required to be raised from property tax. This tax levy is divided by the total assessment of the town. The result is the multiple per assessed thousand you find on your bill.
Two items determine the tax bill; the budget and the assessment. Remember the tax levy is established by the budget. The assessment is based on the value of the property, or market value, determined by the assessor, which is the best estimate of the resale value of these properties.
Property owners of equal value should pay an equal amount in property taxes. In addition, the owner of a more valuable property should pay relatively more in taxes. Similar to an ice cream, a chocolate cone and vanilla cone have an equal value, unless one is larger than the other is. Every property owner should pay neither more nor less than his fair share.
Taxpayers unhappy with property tax bills need to be concerned with fairness of assessments. Additionally they must investigate the budget and expenses of the taxing district such as the county legislature, school board, town board, fire department and other special districts - that execute taxes in your community. Representing your town, we must effectively lower operating expenses for this and future years, reducing the tax levy.
Taxpayers unhappy with property tax bills need to be concerned with fairness of assessments. Additionally they must investigate the budget and expenses of the taxing district such as the county legislature, school board, town board, fire department and other special districts - that execute taxes in your community. Representing your town, we must effectively lower operating expenses for this and future years, reducing the tax levy.
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