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The following examples will show the effects of reassessment on a parcel of property. The increase in value from the last
re-assessment cycle being used in these examples is 20%. Reassessment is mandated by State Law and must occur at least once every four years.
Example 1
Residential property subject to homestead exemption:
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
80,000
75,000
5,000
500
$50.00 |
96,000
75,000
21,000
2,100
$210.00 |
$16,000 = 20%
$160.00 = 320% |
In this example, the homestead exemption is at it maximum allowed by law, therefore the resulting taxes are significantly
higher because the overall value increased but the homestead exemption is
remained the same.
Example 2
Residential building not subject to homestead exemption:
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
80,000
00
80,000
8,000
$800.00 |
96,000
00
96,000
9,600
$960.00 |
$16,000 = 20%
$160.00 = 20% |
You will notice that the percentage of increase in taxes is the same as the percentage of increase in total value, 20%.
This is because there is no exemption on part of the value.
The following examples will show the effects of reassessment on residential property
with different values which is subject to the homestead exemption.
These examples will use a 20% increase in overall value
during the four years from the last reassessment
year (2000) to the next (2004).
Example 3
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
100,000
75,000
25,000
2,500
$250.00 |
120,000
75,000
45,000
4,500
$450.00 |
$20,000 = 20%
$200.00 = 80% |
Example 4
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
125,000
75,000
50,000
5,000
$500.00 |
150,000
75,000
75,000
7 ,500
$750.00 |
$25,000 = 20%
$250.00 = 50% |
Example 5
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
150,000
75,000
75,000
7,500
$750.00 |
180,000
75,000
105,000
10,500
$1,050.00 |
$30,000 = 20%
$300.00 = 40% |
Example 6
| |
2003 VALUE |
2004 VALUE |
INCREASE |
| |
|
|
|
Total value
Homestead
Taxable
Assessed value
Tax Rate 100 mills
Taxes |
200,000
75,000
125,000
12,500
$1,250.00 |
240,000
75,000
165,000
16,500
$1,650.00 |
$40,000 = 20%
$400.00 = 32% |
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