Is all property taxed at the same rate?
No. Instead of taxing at different rates, the tax rate in a certain location is used with variances in value being determined by property classification.
Assume a $100,000 property. If the tax rate in your location is $5.00 per $100 of assessed valuation, you would pay more tax for a commercial property than a residential property. Even though the tax rate is the same, the assessed value varies by classification:
- Commercial $100,000 x 32% = $32,000 assessed value. $32,000/100 (Assessed Value per 100) * $5.00 = $1,600 taxes
- Residential $100,000 x 19% = $19,000 assessed value $19,000/100 (Assessed Value per 100) * $5.00 = $950 taxes
When you apply the same tax rate, the larger value will have more taxes.
(In reality, the tax rate for commercial property is always higher than residential property due to a commercial surcharge on commercial real estate; the above is for illustrative purposes only).
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Real Estate Page.

Show All Answers

1. How often do you reassess property?
2. Who makes the decision to reassess my property?
3. Why is reassessment required?
4. What is market value?
5. What is the difference between market value and assessed value?
6. Do all property values change during reassessment?
7. How can my property value increase if I have done nothing to it?
8. What if I disagree with my assessment?
9. Why do my taxes increase?
10. How does reassessment affect my taxes?
11. Is all property taxed at the same rate?
12. Where do you get your car values?
13. Why is there a penalty for turning in a late assessment list?