Cost to tax payers on school referendum not as high as previously reported

In last week’s editions of The Herald, information regarding how the taxpayers would be charged for the added cost was not complete, and information received by The Herald showed the correct breakdown of the added cost.

Posted April 18, 2014

By COLE BENZ | Editor | cbenz@countrymedia.net

In last week’s editions of The Herald, information regarding how the taxpayers would be charged for the added cost was not complete, and information received by The Herald showed the correct breakdown of the added cost. The cost reflected in the article was indicating that the mill rate would be applied to the true value of the property. However the mill rate, as it relates the referendum, is going to be applied to the taxable value of the property, not the true value.

How is the taxable value figured? First take the true value of the property and divide it in half. The resulted amount then needs to be multiplied by nine percent for residential property and 10 percent for agricultural and commercial property. This amount would be the taxable value, and would need to be multiplied by the mill rate to find the correct amount the taxpayers would be charged annually.

For example, if a residential property has a true value of $50,000, the assessed value is $25,000 and would need to be multiplied by nine percent.  The resulting amount would be $2,250, and that is the number the 77 mills (.077) would be multiplied to.  In this example the annual tax increase would be $173.25.

Information in the earlier article reflected a tax increase of $3,850 annually, which was incorrect.

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