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Example:
If I own a house with a "true" (i.e. fair market) value of $100,000, what would be my taxes due on a proposed new property tax that says it would be 5.9 mills?
1. The assessed valuation of real property is fixed at 35% of true value
$100,000 x 0.35 = $35,000
2. Divide by 1000 to determine how many dollars per mill you would pay
$35,000 / 1000 = $35 per mill of tax
3. Multiply by proposed millage
$35 x 5.9 mills = $206.50
4. Subtract out state rollback of 12.5% for owner-occupied residential property
$206.50 - $25.81 = $180.69
5. Subtract out Homestead Exemption for persons over age 65 and the handicapped and Estimated Federal Tax Deduction of 20% (may vary from 15%-35% dependent upon tax bracket)
TYPES OF PROPERTY TAX LEVIES (as classified by Purpose)
1. Permanent Improvement Levy
- Permanent Improvement (PI) means any property, asset or improvement with an estimated life or usefulness of five years or more
- Subject to tax reduction factor
- Renewal or replacement of existing levy permitted
2. Emergency Levy
- Either to provide for the emergency requirements of the school district or to avoid an operating deficit
- Dollar amount based (i.e. $1,000,000 per year). The millage figure on the ballot is an estimate as the actual millage will fluctuate each year to annually produce the stated dollar amount.
- Not subject to tax reduction factor as it is a fixed dollar amount
- Length of levy varies from one to five years
- Can be renewed, but not replaced
3. Current Expenses/Operating Levy
- Any lawful expenses of the Board of Education which are not for permanent improvements or debt service (i.e. salaries, benefits, books, maintenance, equipment)
- Length can be one to five years or continuing
- Subject to tax reduction factor
- Renewal or replacement of existing levy permitted
Copyright © 2005-2006
Fairview Park City Schools
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