Not necessarily. There two components that drive your tax bill: your assessed value and how much each taxing jurisdiction imposes. Essentially assessed value tells us how to distribute the taxes. If everyone’s assessed value goes up 3%, and the amount of taxes imposed by each jurisdiction stays the same, everyone’s taxes remain the same.
Example Number 1
In 2017 the Village of Sparta has three houses does their full value maintenance and assessed value are as follows:
- House Number 1 - Assessed Value $100,000
- House Number 2 - Assessed Value $100,000
- House Number 3 - Assessed Value $100,000
If the Village of Sparta’s tax levy for the year is $300, here is what the property taxes look like on those same three houses:
- House Number 1 - Assessed Value $100,000 - Taxes $100
- House Number 2 - Assessed Value $100,000 - Taxes $100
- House Number 3 - Assessed Value $100,000 - Taxes $100
This breaks down as follows:
- Total Value: $300,000
- Total Taxes imposed on Sparta: $300
- Tax Rate: $300 divided by $30,0000 equals 0.001 per thousand
- 0.001 multiplied by 10,0000 equals $100 taxes owed
Example Number 2
In 2018, the Village of Sparta does their full value maintenance and assessed value go up as follows:
- House Number 1 - Assessed Value $100,000
- House Number 2 - Assessed Value $100,000
- House Number 3 - Assessed Value $120,000
If the Village of Sparta’s tax levy for the year is again $300, here is what the property taxes look like on those same three houses:
- House Number 1 - Assessed Value $100,000 - Taxes $93.75
- House Number 2 - Assessed Value $100,000 - Taxes $93.75
- House Number 3 - Assessed Value $120,000 - Taxes $112.50
This breaks down as follows:
- Total Value: $320,000
- Total Taxes imposed on Sparta: $300
- Tax Rate: $300 divided by 320,000 equals 0.0009375
Important Points
The example illustrates two important points:
- How your property tax assessment went up in relation to your neighbors is very important. If the average property value in the village went up 10% and yours only went up 1%, it is likely that your share of property taxes will decrease.
- How much each taxing jurisdiction levies is very important. Each year your tax bill breaks down how much of your tax bill goes to each jurisdiction. Additionally it tells you the percentage it increased or decreased from last year.
