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1.
ESTABLISHING THE
VALUE OF PROPERTY:
The Director of Equalization participates in this first
step, which is to establish a value of all property within
the boundaries of each unit of government. Because all property is not of equal value, individual
values are arrived at based on the price the property would
bring if sold. This selling price, determined by the sale
price of comparable properties, and known as the true and
full value, is what establishes the value of the property.
2.
ESTABLISHING THE
AMOUNT OF TAX:
The Director of
Equalization does NOT participate in this process.
Other entities determine the amount of tax dollars needed to
meet the costs of operating a unit of government. The higher the cost of
operating the city or school district, the larger the revenues required from property
taxes.
3. ESTABLISHING A TAX
RATE:
The Director of
Equalization does NOT determine or calculate the tax
rate. Our information is shared with other entities
who establish a tax rate for individual pieces of property,
based on values and the amount of tax dollars needed.
Each unit of government is
responsible for a portion of the tax rate applied in the
collection of tax dollars. These units of government
include: city government, school district, county
government, special districts, etc. The tax rate for all
property in a local unit of government is arrived at by
dividing the value of all the property into the amount of
tax dollars needed to complete the budget of that local unit
of government. |
