How are my taxes calculated?

How are my taxes calculated?


The municipality uses the assessed value of your property and multiplies that value by the municipal tax rate for your property class to get the calculated taxes.

There are five basic tax rates:

  • Residential
  • Farm
  • Multi-Residential
  • Commercial
  • Industrial

Many Municipalities have separate rates for vacant commercial and excess land and others have tax rates for large commercial properties such as shopping centers and large industrial complexes. Many times your assessed value is correct but the code applied to your property is incorrect and thus you have the wrong tax rate applied to the assessment. There are a number of new subclasses that have been added to the list of tax classes over the years, name new commercial construction as an example.  When talking to the assessor you should ask

if your new building qualifies for these new tax classes.

What are some of the things that can cause my assessment to be too high?

  • There is a calculation or input error.
  • There is an error in the information gathered from your property.
  • There is an error in square footage of your buildings or land size.
  • The wrong land rate was used on your property.
  • Your buildings are rated too high and therefore the replacement cost is too high.
  • There is an improper cost adjustment factor on your structures.
  • The depreciation on your buildings is not adequate due to condition.
  • Functional obsolescence on older buildings has not been considered.
  • Economic obsolescence has not been considered.
  • Your location in relation to better-located properties is not considered.
  • Policy or procedural guidelines have not been followed.


Category: Taxes

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