Tuesday, September 25, 2012

How Property Tax is Calculated

Property Tax Reduction Consultants 
125 Jericho Turnpike, Jericho, NY 11753
516-484-0654 or 631-484-0654

Want the low-down on how Property Tax is calculated? Here it goes…

Property tax is tax based on the value of real property, such as counties, towns, villages, schools, road and other services for home owners. Your property tax is determined from your county and the jurisdictions in each county itself. Many people often wonder how to calculate your property tax and how it all works out.

You can calculate the amount you pay in property taxes by multiplying your property’s taxable assessment times the tax rates for school districts, municipalities, counties and special districts. The taxed owed is the taxable assessment times the tax rate to get you your final answer on your property tax.

Here are the steps of how it is calculated.
  • Taxing jurisdiction ( school district, municipality, county, special district,)
  • Taxing jurisdiction determines revenue from all sources other than the property tax( state aid, sales tax, user fees)
  • Revenues are subtracted from the budget and the remainder becomes the lax levy. The tax levy is the amount of the tax levy that is raised through the property tax.
  • To determine the tax rate, the taxing jurisdiction divides the lax levy by the total assessed value of all the property in the jurisdiction.
  • Because tax rates are generally expressed as “per $1,000” of taxable assessed value” the product is multiplied by 1,000.
Those are the steps to take to calculate the tax rates for your property taxes. Your tax bill can change each year due to the changes in the school district or local government. Looking over your property taxes and knowing how they are calculated is always beneficial for managing your finances. 

Do you think you are paying too much in property taxes? Contact Property Tax Reduction Consultants today! We have helped tens of thousands of homeowners just like you save money, and get back millions of dollars in refunds from the towns, for overpaid property taxes. Our mission is to ensure you pay the lowest amount of taxes required by law.

For more information about Property Tax Reduction Consultants, visit PTRC.com, or check out our Facebook Page, linked HERE

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