How Taxes are Figured

Calculating Assessed Value
To calculate assessed value, multiply the appraised value by one of the following state assessment rates:

Property Type	Assessment Rate
Agricultural buildings	25%
Agricultural land*	30%
Commercial / industrial	25%
Not-for-profit	12%
Public utility	33%
Residences on farm home sites	11.5%
Residential	11.5%
Vacant lots	12%
All other rural and urban property	30%

*By law, agricultural land is not valued at fair market value, but upon its productivity and use.

If the fair market value of your home is $150,000, and the assessment rate is 11.5%, this would mean the assessed value would be $17,250 ($150,000 x 0.115 = $17,250).

Calculating Your Tax Amount
Mill levies set by taxing groups like school districts, cities, and counties are used to calculate your taxes. Let's assume the combined mill levy has been set at 120 mills. Multiply the assessed value of your property ($17,250) by the mill levy (120 mills or 0.120). The answer is $2,070, which is your tax amount.

Example

Market value of home	$150,000
Assessment rate - Residential (11.5%)	x 0.115
Assessed value (AV)	$17,250
Mill levy ($120 mills per $1,000 AV)	x 0.120
Amount of taxes	$2,070