Each year in late September or early October, the county assessor places the taxes certified by the taxing districts on the tax roll. Property taxes are placed on the tax roll in the form of a rate per $1,000 of assessed value. In most cases, the taxes for operations are the permanent rate limits certified by the districts. When a district certifies a dollar amount tax levy, such as a local option tax or bond tax, the assessor must calculate a tax rate. To compute the tax rate, the tax levy amount is divided by the taxable assessed value of the district. For example: Green City certifies a local option tax in the amount of $225,000. The taxable assessed value of the city is $39,487,000. The rate for the local option tax is calculated as follows:
tax levy amount / taxable assessed value = tax rate
$225,000 / $39,487,000 = .0056980 or = $5.6980 per $1,000 of assessed value
This tax rate is placed on the individual property tax accounts in the city. All the taxable property within the city will have the same rate for the local option tax. The amount of tax to be paid, of course, will vary depending on the assessed value of each property.
Individual properties are taxed by the districts that provide services to that property. For example, a property in Green City would pay taxes to the city, the county, a school district, and maybe a library district. Property outside the city would pay taxes to the county, a school district, a rural fire protection district, and maybe a library district, but not to the city.
Some properties are subject to assessments of a special taxing district. An example would be a drainage district that assesses on a per acre basis. These qualifying assessments also are placed on the tax roll.
The total amount of tax placed on a property is computed by multiplying the property's assessed value by the combined tax rates of all the districts in which it is located and then adding any assessments.