Quote:
Originally Posted by calf
Not really - the market value is more used to determine how much of the pie the property has to pay. Let's say the total property taxes to be collected last year and this year is $2.00, $1.00 between two properties. If this property was $10M, and the other property was also $10M, and both have a new assessed value of $6M, both would still pay $1.00. The mill rate used, which is multiplied by the assessed value, would go up proportionally. If one property went to $5M, and the other went up to $15M, the first would pay $0.50, and the second $1.50.
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This was the issue with the cleavage between downtown and suburban commercial space. The process they use to budget is to manually adjust the mill rate to be revenue neutral - because the assessed value of downtown's office space plummeted by $4b almost overnight, that burden was distributed across the whole city for non-residential properties (which share a common mill rate). The City ended up rebating and capping increases to help soften the blow. But the downtown vacancy rate has definitely had a big impact, overall. Downtown pays about 25% of the (non-residential
and non residential) property tax bill, traditionally.