Quote:
Originally Posted by h_curtis
That being said, could the county raise taxes 22% in the year of reassessment? Why did they do it beforehand? Will that 22% equate to more than 22% when the reassessment hits? Will they retract the 22%? Will they take the 5% on top of that in the reassessment year? What is the actual increase in county taxes as a percentage? It has to be greater than 22%, correct? That was the percentage that was reported. Was it incorrect?
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Nope. It will be exactly the same.
So the millage rate went from 4.69 to 5.69, a change of 21.32% (5.69/4.69-1).
Let's assume a pre-reassessment aggregate value of $100k.
Pre-reassessment, pre tax hike, tax bill would be:
$100k * 4.69 = $469.
Pre-reassessment, after tax hike, tax bill would be:
$100k * 5.69 = $569.
There difference - the effect of the tax hike
before reassessment - is $569/469-1 =
21.32%.
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So next let's assume that the reassessed aggregate value is $175k. The would be an increase of 75%.
If the tax hike wasn't levied, the new millage rates would have been:
( 1.05 * 4.69 * $100k ) / $175k = 2.814.
But the tax hike did happen, so the new millage rate, assuming the assessed values I mentioned, would be:
( 1.05 * 5.69 * $100k ) / $175k = 3.414.
If the tax hike wouldn't have happened, after reassessment a home with an assessed value of $175k would have the following tax bill:
2.814 * $175k = $492.45
But the tax hike did happen, so again using the assumed numbers, a home with an assessed value of $175 would have the following tax bill:
3.414 * $175k = $597.45.
So the
after-reassessment effect of the the 21.32% county tax hike will be, amazingly,
$597.45/$492.45-1 =
21.32%.
Note that the assessed and reassessed values I'm using are completely made up. But for this particular calculation, you can use any numbers and get the same result.