How property tax bills are determined can be confusing.
And, theres no reason why most folks should be expected to immerse themselves in the intricacies of how tax statements are figured. That isnt because of lack of perception, rather because daily life already asks so much.
The lions share of taxpayers have property tax obligations because of residential property they own.
If a house has a market value $70,000, the popular number for comparisons in Iola, that doesnt mean the tax levy is placed against that number. Rather, taxes are determined by assessed value of houses, which is determined by multiplying market value by 11.5 percent, an arbitrary number established by the Legislature years ago. Thus, a $70,000 house has assessed valuation of $8,050.
Appraisal, or market value, is subjective, and by its nature never can be absolutely equal the width and breadth of the state. Thats OK. Local market trends are used for local models, and consequently are fair within confines of a local economy.
Other common classes of real property have higher taxing rates than residential property: agricultural land, 30 percent, and commercial property, 25 percent.
Agricultural land is not assessed on market value but is determined by use-value having to do with factors involving production.
THE BACK STORY: When government officials, and those supporting or opposing an issue that affects taxes make declarations, insist that they put taxes and mill levies into terms easily understood: i.e., dollars and cents.
The Register endeavors to provide that information in each article having to do with property taxes. We use what is considered a general model, such as the aforementioned house valued at $70,000, and apply the tax rate, in mills, to assessed valuation.
A mill is one-thousandth of a dollar, which means a levy of one mill when put against assessed valuation of $1,000 raises $1 in taxes. When figuring a levy of say 15 mills, the multiplier to use is .015, or 15-thousandths of a dollar.
If the math leaves you confused, ask a public or elected officials to explain exactly what a change in mill levy means to you in terms of your property.
That is one of their responsibilities, one they should be eager to fulfill.
Bob Johnson
