Millage Rates: Calculating Your Property Taxes
Three elements go into calculating your tax bill: your property value, your exemption, and the millage or taxing rate.
Your property value is determined by the Board of Assessors. If you believe you can sell your property for the value set by the Board of Assessors then it is a fair value and there really is no reason to appeal the assessment. However, if your valuation is excessive or unfair, then by all means, appeal to the Board of Assessors, and if necessary to the Board of Equalization. Your exemption, which is also granted by the Board of Assessors, is the second element in the tax calculation and is basically fixed. It is what you are entitled to receive, such as a regular homestead exemption, disability exemption, overage exemption, or other.
If your property valuation is fair, and your exemption is correct, then the only element you can really influence your property tax bill is the millage rate, which is set by the Board of Commissioners and other governing authorities like school boards and city councils.
Governing authorities decide how much is needed to operate effectively and provide services to the public. Using the digest, the total value of all property in the municipality or county, and the value of all exemptions, a governing authority sets a millage or taxing rate that would produce the revenue needed to accomplish its goals.
Public hearings are held every year to give the public an opportunity to tell governing authorities what it thinks about spending priorities. The more a government spends the higher the millage rate. So by participating in that political process, property owners can influence spending and the millage rate, and in so doing, taxes as well.
2006 Millage Rates by County:
- Forsyth County: 22.88 or .02288
- Hall County: 24.66 or .02466
- Cherokee/Canton County: 26.84 or .02684
- Cobb County: 29.75 or .02975
- Gwinnett County: 32.27 or .03227
- Fulton County: 34.73 or .03473
- Dekalb County: 38.81 or .03881
Mathematics of Property Tax Example (Forsyth):
To determine the amount of your property taxes, several values are needed. These values are the Fair Market Value (FMV), Assessed Value (ASV), and the Millage Rate. The Millage Rate is defined as dollars per $1,000.00 of assessed value. For 2006, the Millage Rate for Forsyth County has been set at $22.88 per $1000.00 or the decimal equivalent of .02288.
Fair Market Value (F.M.V.) X 40% = Assessed Value
Assessed Value X Millage = Tax
Millage is usually expressed as dollars per $1,000.00 of Assessed Value
In 2006, Forsyth County's millage rate is set at .02288. If your property has a FMV of $500,000, the ASV would be 40% or $200,000. Multiply the ASV of $200,000 by the millage rate of .02288 to determine your property taxes. In this example, property taxes would be $4,576.00.
*Remember to file for any tax exemptions if applicable. Ex. Homestead Exemption, School Tax Exemption etc. Please donít hesitate to call Jackye or Chris with any questions you may have!
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