How is my tax bill calculated?

1. How is my tax bill calculated? Answer on the following slides.

2. Your property tax is an Ad Valorem tax a Latin phrase meaning according to the value. It is based on the full and fair cash value FFCV) of the real or personal property. • It is based totally on how much the property you own is worth.

3. EXAMPLE • If an assessor assesses property for 100% of value, a house and land with a market value of $296,500 would be assessed at $296,500. • Therefore with no exemptions, this property’s taxable assessed value is $296,500. This is not the tax bill. The tax bill depends on the Town of Rockland tax rate.

4. Tax Rate The tax rate is determined by dividing the total amount of money that has to be raised, limited by Proposition 2 ½, the “tax levy” by the assessed value of all taxable property in the town. Let us say the towns tax levy is $21,000,000 and the sum of all taxable properties is $2,100,000,000. $21,000,000/$2,100,000,000 is .01000. .01000 X $1000 = $10.00 (the Tax rate). *The Tax rate is the rate per $1000 of assessed value.

5. Therefore the tax bill for the property is: $296,500 the value, divided by 1000 giving you $296.5 Now multiply $296.5 X $10.00,the tax rate. Your annual Tax Bill is $2965

6. Now you have your answer. Now you can see, the amount of your tax bill depends on both the assessment and the tax rate. Click on the link below for additional information Setting the Town of Rockland Tax Rate http://www.rockland-ma.gov/pdf/BOA/Setting%20the%20Tax%20Rate%20for%20FY2009.ppt