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�'�� UEPARTMENT <br />OF REVENUE <br />How value changes affect taxes <br />The examples below are based on a fictional town consisting of four residential non-homestead houses that are not <br />subject to any deferrals, exclusions, or reductions. The small tax base is used to illustrate how value changes may <br />affect taxes for each house. As the tax base becomes larger, value changes will not affect taxes as dramatically as the <br />examples shown. Even if a value change results in a smaller tax bill for one property owner and an increased burden <br />to be shared by all property in the jurisdiction, any value change will ultimately affect all taxpayers in the <br />jurisdiction. <br />Exam�le 1 <br />Total E7v1V =$365,000 Class Rate = 1% Townshrp Levy =$2,004 Tax Rate = 6b% <br />The values and corresPonding share of the tax burden for the Four ProPerties before the rneetinp of the Local Board <br />of ApPeal and E9ualization. <br />Property A <br />EhhV: $40,0�0 <br />o NTC:$400 <br />Q � Taxes: $264 131 <br />ProPerty B <br />EMV: $SO,OdO <br />NTC:$560 � <br />16� Taxes: $330 � o g o <br />Percentage <br />Q 30% of Tax � <br />Q�� 00 41% � � <br />Property C Property D � <br />EMV: $90,�00 ` EMV; $125,000 � <br />0 o m NTC: $900 NTC: $1,250 0 Q � <br />Taxes: $594 Taxes: $825 <br />ExamPle 2 <br />Total EMV =$280v000 Class Rate = 1% 7ownshiP Levy =$2�000 Tax F2ate = 72% <br />The owner of Property D appealed the value of his property. He did not provide any evidence as to why his value <br />should be reduced. The board reduced his value by $25,000. The examPle shows �ow the change affects the share <br />of the tax 6urden for the four ProPerties. <br />ProPerty A ProPerty B <br />EMV: $40,000 EMV: $50,004 <br />NTC:$4Q0 NTC:$560 � <br />14% o 0 <br />� � � Taxes: $28$ is% Taxes: $360 0 <br />Percentage <br />� g2� of Tax Q <br />0�0 �0 34% � � � <br />Property C Rroperty D � _ <br />� � m EMV� $90,000 EMV� $100,0�0 O � � <br />NTC: $900 NTC: $1,000 <br />Taxes: $648 Taxes� $720 <br />ExamPle 3 <br />Total EM'J -$330,000 Class Rate = 1% Townshi� Levy =$2,QOfl Tax Rate = 61% <br />The owner of ProPerty D aPpealed the value of his ProPerty. He did not Provide any evidence as to why his value <br />should 6e reduced, The 6oard raised his value by $25,000. The example shows how the change afFects the share of <br />the tax burden for the four properties. <br />Property A Property B <br />EMv: $ao,aoo EMv: $sa,000 <br />NTC�$400 NTC:$500 <br />� �' � Taxes: $244 12i° 15� Taxes: $305 � � o � <br />Percentage <br />2�% of Tax <br />� <br />� � � � � Property C <br />o p m EMV: �40,000 <br />NTC; $900 <br />Taxes: $549 <br />� <br />0 <br />46% � � <br />Property D � <br />EMV: $150,000 � <br />I�TC: $1,500 � � � <br />Taxes: $915 <br />