Property taxes are one of the main sources of revenue for local governments and they are based on the value of your property and millage rate. The millage rate is the tax rate per $1000 of assessed value, and it is set by the county and school board every year. The millage rate is based upon the assessed value of your home or property. The assessed value is the appraised value x 40%. For example, if your property is appraised at $200,000, the assessed value is $80,000. If the millage rate is 10 mills, the property tax you pay is ($80,000 / 1000) x 10 = $800.
The millage rate is determined by two factors: the budget and the digest. The budget is the amount of money that the county and the school board need to provide public services and projects such as public safety, transportation, education, recreation and infrastructure. The digest is the total value of all the taxable property in the county which is assessed by the Board of Tax Assessors. The county typically must have hearings before setting the millage rate so that people can voice their opinions on the matter.
The property tax bills can also have different due dates depending on the county. Many counties collect in November or December to pay the year in arrears. Some municipalities have a city tax in addition to the county property taxes to pay for services rendered on behalf of the city.
