Property Tax Calculation
Your property taxes are determined by multiplying the actual value times the assessment rate times the mill levy. The assessment rate on residential properties is 11.5%. The assessment rate for commercial and industrial purposes is 25%. The assessment rate is fixed by law and is the same statewide.
Let's assume the market value of your home has been determined to be $60,000, and the statewide residential assessment rate is 11.5%. This would mean that the assessed value of your home would be $6,900 ($60,00 times .115 = $6,900).
Let's also assume that the total mill levy is determined by the local taxing authorities of your particular taxing district. Multiply the assessed value of your property ($6,900) by the mill levy (125 mills or .125). The amount is $862.50, which is your share of the total responsibility to support the programs for which taxes are budgeted.