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Tax Calculations |
Tax rates are based on millages. Millages are voted on by the public for the various governmental services the public
deem necessary. The tax rate in Tangipahoa Parish will vary from area to area because each part of the parish has its own special districts or taxes that have been approved by
the public. Examples of such special districts are fire, recreation, drainage and etc. The easiest way to understand tax millages is to use a 1 mill tax as an example. A one
mill property tax will produce $1.00 in taxes on each 1,000 dollars of “assessed value”. You must always convert “market value” to “assessed
value”. The average millage rate for Tangipahoa Parish is 100 mills.
Property values are created by the “MARKET”, the buyers and sellers of real estate. The assessor does not create the “market”. He must use
the market as a guide in establishing property values. Market sales are recorded in the Clerk of Courts Office. He must then analyze this data and arrive at the values that are
consistent with the different areas of the parish. To accomplish this task, the Assessor must use a computer assisted mass appraisal (CAMA) system.
To calculate taxes on a parcel of property you must take the “market value” for assessment purposes and then apply the
assessment ratio to this value to arrive at the assessed value. All taxes are calculated on “assessed value”.
The first example will be a parcel of residential property which is subject to a 10% assessment ratio.
Market Value
Less: Homestead exemption
Taxable value
Tax rate (100 mills)
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$100,000 x 10%
75,000 x 10%
25,000 x 10%
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=
=
=
= |
10,000 assessed value
7,500 assessed value
2,500 assessed value $250.00 |
The second example will be a parcel of commercial property with a building. The land is assessed at 10% of market value and the building at 15% of market value.
Market value-Land
Building
Total value
Taxable value
Tax rate (100 mills)
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$50,000 x 10%
50,000 x 15%
$100,000
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=
=
=
= |
5,000 assessed value
7,500 assessed value
12,500 assessed value $1,250.00 |
If the second example would have been a residential building not subject to homestead exemption the assessed value on a market value
of $100,000 would be 10,000 not 12,500. The taxes at a rate of 100 mills would equate to $1,000.00 not $1,250.00.
When placing a value on public service properties such as utilities, telephone companies, railroads and pipelines, a market value
of $100,000 would produce an assessed value of 25,000. Public service properties are assessed at 25% of market value.
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