What is Taxable Value?
Taxable value refers to a percentage of the assessor's appraisal according to a state-prescribed formula, after any exemptions are removed.
- An assessment ratio of 50% is multiplied by the assessor's appraisal to get assessed value.
- Then, the assessed value is multiplied by 9% for residential and 10% for all other property classes to get taxable value.
- Therefore, the taxable value of residential property is 4.5% of the assessor's estimate of value; for commercial and agricultural property, it is 5% of the assessor's value .
- To calculate annual taxes for a property, the taxable value is multiplied by the mill levy.