Property Taxes

How is our property tax calculated?

When you purchase a home, the assessor’s office can reassess the value of your home to the current sales price (Point of Sale assessment).

(Value x Assessment Ratio x Millage Rate) – Tax Credits = Property Tax

Example of annual property tax using assumptions:

($500,000 x 4% x .2294) – $2,500 = $2,088
($500,000 x 6% x .2294) – $    327 = $6,555

Owner-occupied dwellings are taxed at a 4% assessment ratio.
Non-owner occupied dwellings are taxed at a 6% assessment ratio.

The assessed property VALUE is limited to a 15% increase every five years. This 15% cap is removed if the property is involved in an “assessable transfer”. What qualifies as an assessable transfer?

ASSESSABLE TRANSFERS ARE:

  • Sale of property
  • Rent-to-Own
  • Transfer to/from trusts
  • Transfer by will
  • Long-term lease (20 years)
  • Corporate transfers
  • Changes in zoning/rollback taxes

EXEMPT TRANSFERS ARE:

  • Any IRS-exempt transfer
  • Transfer to spouse (divorce)
  • Insurance rebuilds (fire, etc.)
  • Foreclosure, forfeiture, deed in lieu
  • Life estates
  • Tax sales
  • Security interests
REDUCE YOUR PROPERTY TAX LIABILITY BY:

  1. If home will be your primary residence, apply for the legal residence tax ratio of 4% (only one legal residence is allowed). There is a one page form to complete and provide to the Tax Assessor’s Office with proof of residency (driver’s license, auto registration).
  2. If you feel the assessed value of your property is too high given the current real estate market conditions, file an appeal with the tax assessor’s office. They will listen!
  3. Apply for all eligible tax credits due you (disability, senior citizen, homestead exemption, etc.).

* Elected officials set the county millage tax rate. You have a say in this by VOTING.