Wendorff Assessing

Contact us

info@wendorffassessing.com

The tax rate in one municipality is higher than the tax rate in another municipality. Does that mean the taxes will be higher in that municipality?

No.  Taxes due on a property depends on 2 things, the tax rate and the assessed value.  They are multiplied to determine the amount of the tax due.

           Taxes Due = Tax Rate times Assessed Value

Assume the market value of 2 properties is the same at $100,000.  In one municipality, it is assessed at $80,000, because all property in the municipality is assessed at 80% of market value.  The tax rate is .024 ($24.00 per thousand).  The tax due is $1,920.

In the second municipality, the $100,000 property is assessed at $95,000, because all property in the municipality is assessed at 95% of market value.  The tax rate is .022 ($22.00 per thousand).  The tax due is $2,090.

In this situation, both properties have the same market value, but the property with the lower tax rate has the higher taxes due.