Ad Valorem Tax: a tax assessed according to the value of property.
Assessed Valuation (AV): the total valuation for taxing purposes on the county auditor’s real, personal and public utility property lists.
Bond: An interest bearing securities certificate used for raising capital which promises to pay the owner a specified sum on a certain date.
General Obligation Bonds (GO Bonds): securities issued with a pledge of the full faith, credit and general property taxing power of the issuer (voted bonds are GO Bonds).
Mill: a tax rate expressed as a fraction of a dollar (0.001). One mill is equal to a tax of one dollar ($1.00) per one thousand dollars ($1,000) of assessed value.
Note: a security, usually maturing in one year or less, the interest on which is payable at maturity – often issued before bonds ( i.e. “bond anticipation notes”).
If I own a house with a “true” (i.e. market) value of $150,000, what would be my taxes due on a proposed new property tax or bond issue that says it would be 5.0 mills?
- the assessed valuation of real property is fixed at 35% of true value
$150,000 x .35 = $52,500
- divide by 1000 to determine how many dollars per mill you would pay
$52,500 / 1,000 = $52.50 per mill of tax
- multiply by proposed millage
$52.00 x 5 mills = $262.50
- subtract out state rollback of 10% or 12.5% for owner-occupied residential property for owner-occupied: $262.50 – 32.81 = $229.69
- subtract out homestead exemption for persons over age 65 and the handicapped