Answering common tax questions

ASHBURN — Around this time of year, elected boards are discussing budgets and taxes. Lots of people do not understand this process and wonder what property taxes are and more.

Here is a list of the most common tax questions reporters get.

What is a mil?

A mil is 1/10th of 1%. The plural is mils. Millage rate is the number of mils collected.

How much is a mil?

Use round numbers to make this easy. One dollar has 1,000 mils. $10 has 10,000 mils. So for $10,000, one mil is $10.

Will my taxes go up with a millage increase?

Yes. Your taxes will go up.

How much will my taxes go up?

No one knows how much your taxes will go up. A rate hike is not guaranteed. Also, your property tax bill is unique to your property, and everyone’s bill is different.

Why will my taxes go up?

No one knows if your taxes will go up, yet. If the commissioners or councils or school board raises taxes, it is because they decided their respective budget needs more money. The only place the boards can reliably get more money is through raising taxes.

Why is my bill different?

Your bill is different because every property has a different property value. Two houses next to each other can be worth very different amounts.

How do I figure my tax bill?

You figure your tax bill by getting the assessed value of your house. That number is at the Assessor’s office in the courthouse complex. Then, you take 40% of that assessed value. This is the baseline for your taxes. Then you deduct any exemptions, like the homestead exemption or an agriculture covenant exemption. This reduces the taxable value of your property.

Multiply that reduced taxable amount by the mil rate and you get your tax bill.

That’s too complicated. Is there an easier way?

No.

Can I claim exemptions on other property?

Exemptions on other property you may own depends on how the property is being used. Talk to the Tax Assessor’s office in the courthouse annex to learn more.

Who decides how much my property is worth?

The Tax Assessor’s office determines how much your property is worth.

My property value is wrong. What do I do?

If you feel your property value is wrong, you can appeal. The Tax Assessor’s Office sends a letter every year to taxpayers telling them what their property is worth. That letter spells out the appeal process.

How do I appeal?

The Tax Assessor’s office has that information.

Can I stop my taxes from going up?

You cannot stop your taxes from going up. As property values rise, your taxes will also rise if the millage rate remains the same. The County Commission, City Council or School Board are the only ones who can raise or lower the millage rate. You can contact them and tell them to cut the rate, leave it alone or raise it.

I pay too much. What can I do?

If you feel you pay too much in taxes, you can appeal your property value or try to get the Commissioners, Council members or School Board members to reduce the millage.

If the mil rate is cut, what happens?

Unless the Commission, Council or BOE can find another way to raise money, services will get cut with a millage rate cut.

Can they get money from somewhere else?

They can get money from other sources, but it is limited. The Commission, Councils and BOE also get money from sales taxes, which is a significant amount. Grants help, but they are a tiny amount of the various budgets. Some cities collects additional fees on the utility bill. Other cities and counties could do this. The School Board cannot. Most of the School Board budget comes from the state and a lot comes from the federal government.

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