The
property tax is an ad valorem tax, that is, a tax based upon value. It’s
the primary means by which local government pays for services it provides, such
as police and fire protection, schools, road, parks, courts, etc. It involves
two separate functions, the assessment function and the budget function.
After these functions are completed, the county auditor calculates the
appropriate mill rate and that rate is applied to each
taxable property to determine the property tax.
The
assessor is responsible for discovering, listing and valuing all taxable
property. All real property is subject to taxation, unless expressly
exempted by law. All property is valued according to its value on
February 1st of each year. All real property is valued at True and Full
Value. For residential and commercial property, this equals market value.
For agricultural value, it equals its productivity value as defined by
The
assessor must notify property owners when the valuation increases more than 10%
over last year’s value. In April of each year, the assessor’s assessments
are reviewed by the city or township boards of equalization. Within the
first 10 days of June, the county reviews the assessments of cities and
townships. During August of each year, the State Board of Equalization
reviews the assessments as finalized by the various counties.
The
assessor, by the fair and accurate valuation of property, ensures that everyone
shares equitably in the total burden of property taxation.
If the assessment is lower than your estimate, the property may be receiving an exemption or homestead credit. Also, there may be a partial assessment or no assessment on any recent improvements. Also, the property may not have been inspected for some time. Depending upon the circumstances, the property taxes could increase significantly if the property assessment becomes adjusted to market value.
If the assessment is
higher than your estimate, it may be that your estimate is subject to
assumption of special assessments. Otherwise you may want to contact your
city or township assessor and have your assessment reviewed.