Smartacus Study Sheet: Property Taxes

Business Math Terms

  • Market Value is an estimate of the price of property if it were sold.
  • Assessed Value is a percentage of the market value of property.
  • Property Tax is the tax levied on property using one of the methods described below.

Finding Assessed Property Values:

  • The assessment rate is expressed as a percentage
  • Given the assessed value, market value, and assessment rate for a piece of property:

    Assessed Value = (Market Value) x (Assessment Rate)

Property Taxes Using Assessment Rate:

  • The tax rate is expressed as a percentage
  • Given the assessed value for a property and the tax rate:

    Property Tax = (Assessed Value) x (Tax Rate)

Property Tax Using Mills:

  • Mills, short for mills per $1, is the amount of property tax per $1000 of assessed value
  • Given the assessed value for a property and the mills per $1:

    Property Tax = (Assessed Value) x (Mills per $1)/$1000

Property Tax Using Rate Per $100:

  • Tax rate per $100 is expressed as the amount of tax due for every $100 of assessed value
  • Given the assessed value for a property and the tax rate per $100:

    Property Tax = (Assessed Value) x (Rate per $100)/$100

Property Tax Using Rate Per $1000:

  • Tax rate per $1000 is expressed as the amount of tax due for every $1000 of assessed value
  • Given the assessed value for a property and the tax rate per $1000:

    Property Tax = (Assessed Value) x (Rate per $1000)/$1000