Tax Levies and Assessed Values

There are a number of different taxing districts in a jurisdiction, each with a different levy.  Each year the County Auditor determines for that district a levy that will yield enough money to pay for schools, police and fire protection, road maintenance and other services budgeted for in that area.  The tax levy is applied to each $1,000 of a property's taxable value.  The value determined by the Assessor is the assessed value and is the value indicated on the assessment roll.  The taxable value is the value determined by the auditor after application of state-ordered "rollback" percentages for the various classes of property and is the value indicated on the tax statement.  When comparing the value of your property with other properties, always compare with the value on the assessment roll or the assessors property record cards and not the value indicated on the tax statement.

Property Assessment and Tax Flow Chart

Things to remember:

• Assessed value and taxable value are not synonymous terms.
• Property is assessed as of January 1st.
• Property is reassessed every two years.
• Taxes are levied on a value determined by the auditor by applying a "roll back" percentage to the assessed value and deducting any applicable exemptions or credits.  The "roll back" percentages vary each year.

On values determined as of January 1st, one does not start to pay taxes until eighteen months later.  The "roll back" is the percentage of actual value that is determined by the Director of Revenue each year on the several classes of property where the total value increase STATEWIDE, exceeds four percent for each class of property.  The percentage so determined by the Director of Revenue is certified to and applied by the local county auditor to all property in each class affected throughout the State.

Increases in assessed value of individual parcels of property as determined by the assessor, may exceed four percent within a jurisdiction.  Agricultural property, except agricultural dwellings, are assessed on the basis of productivity and net earning capacity using a five-year crop average and capitalized at a rate set by the Legislature.  The rate is currently seven percent.  Tentative and final equalization orders are issued by the Director of Revenue in odd numbered years on or about August 15th, and October 1st respectively.  The orders are sent to the various county auditors who apply them to the classes of property affected, if any.

Assessor's Page 3