The first step is to determine the type of calculation needed:
1) Certified tax rate; or 2) Equalized tax rate.
(1) Certified tax rate:
(a) The first step is to set a pro forma
current year tax base for the jurisdiction by removing new property from the
locally assessed property tax base and then adding estimated centrally assessed
property.
(b) The second step is to
determine the preceding year's property tax levy.
(c) The third step is to determine the
certified tax rate. Divide the
preceding year's property tax levy by the pro
forma current year tax base and multiply by 100.
EXAMPLE
A city's preceding year tax levy is $14,352,424, and the pro
forma current year tax base is $723,120,031. The following is an example of the
calculation:
$14,352,424/723,120,031*100 = $1.9848 (Certified tax
rate)
(2)
Equalized Tax Rate:
(a) The first step is to
fix a pro forma equalized current year tax base for the city by removing new
property from the locally assessed tax base and then adding the estimated
centrally assessed property for the part of the city lying in each
county.
(b) The second step is to
determine the preceding year property tax levy for each part of the city lying
in different counties. These numbers from each part of the city are added
together to arrive at the total preceding year property tax levy used in the
fourth step.
(c) The third step is
to determine the current year's equalized adjusted assessment for each part of
the city by dividing the adjusted current year total assessment in each part of
the city by the current year's approved
appraisal ratio. These numbers are
added together to arrive at the total equalized adjusted assessment used in the
fourth step.
EXAMPLE
A city's current year adjusted assessment is $3,934,948 for JUR
1 and $1,545,591 for JUR 2, and the current year appraisal ratio is 1.0000 for
JUR 1 and .8200 for JUR 2. The following is an example of the
calculation:
|
JUR 1 - Adjusted Assmt.
|
$3,934,948
|
Appraisal Ratio
|
1.0000
|
|
JUR 2 - Adjusted Assmt.
|
$1,545,591
|
Appraisal Ratio
|
.8200
|
JUR 1 - $3,934,948/1.0000 = $3,934,948 (current year equalized
adjusted assmt.)
JUR 2 - $1,545,591/.8200 = $1,884,867 (current year equalized
adjusted assmt.)
Add JUR 1 and JUR 2 equalized adjusted assmt.:
|
$3,934,948
|
|
$1,884,867
|
|
$5,819,815 (Total current year equalized adjusted
assmt.)
|
(d) The fourth step is to determine an
overall
equalized tax rate by dividing the total equalized adjusted assessment
by the total
preceding year property tax levy times 100.
EXAMPLE
A city's total preceding year property tax levy is $44,636, and
the total current year equalized adjusted assessment is $5,819,815. The
following is an example of the calculation:
|
JUR 1 - Preceding Year Tax Levy
|
$30,062
|
Equalized Adjusted Assmt.
|
$3,934,948
|
|
JUR 2 - Preceding Year Tax Levy
|
$14,574
|
Equalized Adjusted Assmt.
|
$1,884,867
|
|
TOTAL:
|
$44,636
|
TOTAL:
|
$5,819,815
|
$44,636/$5,819,815*100 = $0.7670 (Overall Estimated Tax
Rate)
(e) The fifth step is
to determine the
equalized tax rate for the part of the city lying in each
county by dividing the overall
equalized tax rate by the approved current year
appraisal ratio for each county.
EXAMPLE
A city's overall equalized tax rate is $0.7670. The current
year appraisal ratio for JUR 1 is 1.0000 and .8200 for JUR2. The following is
an example of the calculation:
JUR 1 - $0.7670/1.0000 = $0.7670 (current year equalized tax
rate)
JUR 2 - $0.7670/.8200 = $0.9353 (current year equalized tax
rate)
