Quote:
Originally Posted by Kavy
What does this mean? How does your assessment go up but "revenue neutral tax" go down?
Thank you!
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It's because it's not a flat rate, but based on the city budget divided by the total property values in the City. So if your assessment went up, but not as much as the total property values in the City went up, your taxes should actually go down.
E.g. your house is worth $200K, the total properties are worth $200 billion, and budget is $2 billion. That means the mill rate is $2 billion/$200 billion = 1% and your property taxes would be $200K * 1% = $2K.
Now let's say the following year your house went up by 5% or $10K and is now worth $210K, however the total properties in the city went up by 10% or $20 billion and are now $220 billion. If the budget stays at $2 billion, the mill rate would be $2 billion/$220 billion = 0.91%. So your taxes would be $210K * 0.91% = $1911.