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# Property Taxes PowerPoint PPT Presentation

Property Taxes. 6.3. Decimal Tax Rate. Terms to Know: Property Tax Assessed Value Decimal Tax Rate Decimal Tax Rate formula= Amount to be Raised by Property tax Total Assessed Value. Decimal Tax Rate (Example).

Property Taxes

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## Property Taxes

6.3

### Decimal Tax Rate

• Terms to Know:

• Property Tax

• Assessed Value

• Decimal Tax Rate

• Decimal Tax Rate formula=

Amount to be Raised by Property tax

Total Assessed Value

### Decimal Tax Rate (Example)

Paynesville School District budgeted expenses of \$6,000,000. Estimated income of \$1,800,000. Total assessed value last year was \$39,000,000.

Find the tax rate needed to meet expenses, correct to five decimal places.

### Decimal Tax Rate (Solution)

Expenses – Estimated income = Property tax needed

\$6,000,000 - \$1,800,000 = \$4,200,000.

Solve the Decimal Tax Rate formula…

\$4,200,000 / 39,000,000 = 0.107692 = 0.10769 (Tax rate)

### Check for Understanding (Solution A)

• What is the decimal tax rate (3 decimal places)?

• Expenses – Estimated income = Property tax needed

\$6,750,000 - \$650,000 = \$6,100,000.

• Solve the Decimal Tax Rate formula…

\$6,100,000 / 80,000,000 = 0.0762 =

0.076 (Tax rate)

### Check for Understanding (Solution B)

• What is the decimal tax rate (4 decimal places)?

• Expenses – Estimated income = Property tax needed

=\$1,950,000.

• Solve the Decimal Tax Rate formula…

\$1,950,000 / 48,200,000 = 0.04045 =

0.0405 (Tax rate)

### Tax Rates per \$100 of Assessed Value (Example)

• Calculate the property tax due on Watson’s \$60,000 property if his tax rate is \$6.20 per \$100.

• Divide assessed value by 100

\$60,000/100 = 600 (# of \$100 units)

• Tax rate x # of \$100 units = property tax due

\$6.20 x 600 = \$3,720

### Tax Rates per \$100 of Assessed Value (C)

• Calculate the property tax due on \$42,000 property if his tax rate is \$3.736 per \$100.

• Divide assessed value by 100

\$42,000/100 = 420 (# of \$100 units)

• Tax rate x # of \$100 units = property tax due

\$3.736 x 420 = \$1,569.12

### Tax Rates per \$100 of Assessed Value (D)

• Calculate the property tax due on \$120,000 property if his tax rate is \$4.128 per \$100.

• Divide assessed value by 100

\$120,000/100 = 1,200 (# of \$100 units)

• Tax rate x # of \$100 units = property tax due

\$4.128 x 1,200 = \$4,953.60

### Tax Rates per \$1,000 of Assessed Value (Example)

• Calculate the property tax due on Watson’s \$60,000 property if his tax rate is \$62 per \$1,000.

• Divide assessed value by 1,000

\$60,000/1,000 = 60 (# of \$1,000 units)

• Tax rate x # of \$1,000 units = property tax due

\$62 x 60 = \$3,720

### Tax Rates per \$1,000 of Assessed Value (E)

• Calculate the property tax due on \$67,500 property if his tax rate is \$50.08 per \$1,000.

• Divide assessed value by 1,000

\$67,500/1,000 = 67.5 (# of \$1,000 units)

• Tax rate x # of \$1,000 units = property tax due

\$50.08 x 67.5 = \$3,380.40

### Tax Rates per \$1,000 of Assessed Value (F)

• Calculate the property tax due on \$13,500 property if his tax rate is \$25.83 per \$1,000.

• Divide assessed value by 1,000

\$13,500/1,000 = 13.5 (# of \$1,000 units)

• Tax rate x # of \$1,000 units = property tax due

\$25.83 x 13.5 = \$348.71

### Tax Rates in Mills or Cents per Dollar of Assessed Value (Example)

• Calculate the property tax due on Watson’s \$60,000 property if his tax rate is stated as 62 mills or 6.2 cents per \$ of assessed value.

• Mills / 1,000 = Mills rate in \$

• 62/1,000 = \$0.062

• Cents / 100 = Cents rate in \$

• 6.2/100 = \$0.062

• Property assessed amount x rate in \$ = total tax amount

• \$60,000 x \$0.062 = \$3,720

### Tax Rates in Mills or Cents per Dollar of Assessed Value (G)

• Calculate the property tax due on \$38,400 property if his tax rate is stated as 52 mills per \$ of assessed value.

• Mills / 1,000 = Mills rate in \$

• 52/1,000 = \$0.052

• Property assessed amount x rate in \$ = total tax amount

• \$38,400 x \$0.052 = \$1,996.80

### Tax Rates in Mills or Cents per Dollar of Assessed Value (H)

• Calculate the property tax due on \$32,100 property if his tax rate is stated as 3.8 cents per \$ of assessed value.

• Cents / 100 = Cents rate in \$

• 3.8/100 = \$0.038

• Property assessed amount x rate in \$ = total tax amount

• \$32,100 x \$0.038 = \$1,219.80