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Property Taxes

Property Taxes. Property Taxes. Provide the municipality with the funding it needs to provide services to its residents Garbage collection, libraries, pools, parks, police, fire Municipalities must calculate at what rate to tax it’s residents. Amount of tax you will pay is based on

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Property Taxes

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  1. Property Taxes

  2. Property Taxes • Provide the municipality with the funding it needs to provide services to its residents • Garbage collection, libraries, pools, parks, police, fire • Municipalities must calculate at what rate to tax it’s residents. • Amount of tax you will pay is based on • Value of your property • Value of all the properties in your municipality, • Amount of money needed by the city

  3. Property Tax Terminology • Assessed Value • the most probable selling price for a property • varies based on location, building style, and size of the property. • Property Classification • Based on its use • Residential, commercial, industrial, agriculture.

  4. Property Tax Terminology • Portioned Percentage. • Determined by property classification • A certain percentage of your homes value used to calculate taxes owing. • Need to know – Residential and Farm!

  5. Property Tax Terminology • Portioned Assessment • Based on portioned percentage • You are only assessed this percent! • Land and buildings calculated separately • Rounded to the nearest $10. • Example • Residential home, assessed at $150,000 • Portioned Assessment = 0.45(150,000) = $67, 500 • Total for all property in a municipality called Total Portioned Assessment

  6. Property Tax Terminology • Property Tax Rate • Rate at which property owners will be taxed • can be expressed as a percent, as cents per dollar, or as a mill rate. • As a percentage • Mill Rate • the rate of tax per $1000 • multiply percent by 1000 to express rate in mills

  7. Example 1 • Sarah Mahler owns a home in FlinFlon. The market value assessment of the land is $7350 and the building is $76,500. • Find the portion percentage • Find the total market assessment. • Find the portioned assessment

  8. Example 2 • A town requires revenue of $4,500,000 to be raised from property taxes. The total portioned assessment of all taxable properties is $200,000,000. • Find the tax rate expressed • As a percentage rate. • In cents per dollar. • In mills.

  9. Assignment Page 155 #1 – 10

  10. Municipal Finance Property and Education Taxes

  11. Education Taxes • Property taxes include • Municipal taxes • Education taxes • Taxes charged by both the local school board and the provincial government.

  12. Municipal Taxes • Actual dollar amount of taxes to be paid • Includes • General municipal taxes • calculated using the mill rate (rate of tax per $1000 assessed) • Local improvement taxes. • based on cost of the improvement per frontage foot • We will consider frontage to be the width of the property

  13. Education Taxes • Supports school divisions in the province. • Provincial Education Tax #1 or #2 • Mill rate set by provincial government • All property owners only pay one tax (#1 or #2) • School Division Tax • Mill rate is set by the local school division

  14. Example • The Wallace family owns a home with a market value assessment of $71,500 and a land assessment of $13,500. • The municipal mill rate is 21.415 mills, the Provincial Education Tax #1 rate is 7.926 mills, and the School Division tax rate is 21.403 mills. • The property has a frontage of 50 feet. The family is charged local improvement tax for road oiling and lane lighting.

  15. Example – continued • Calculate the total • Portioned assessed value • Annual municipal taxes • Annual education taxes • Annual municipal and educational taxes • $71,500 and $13,500. • Municipal: 21.415 mills • Prov. Ed. Tax #1: 7.926 mills • School Division: 21.403 mills. • 50 feet: local improvement tax • road oiling • lane lighting.

  16. Assignment Module 2 Lesson 4

  17. Municipal Finance Statement of Demand for Taxes

  18. Statement of Demand for Taxes • Property tax statement • Outlines your property, and the taxes you owe. • Vary slightly from one area to the next but generally the same • Part 1 – Property Description • Part 2 – Municipal Taxes • Part 3 – Education Taxes • Part 4 – Provincial Tax Credit • Part 5 - Summary

  19. Property Description How much Property on the road Values of each individually Assessed Value You will need to find this! 10 or 30 45% or 30% T- Taxable For all our examples

  20. Municipal Taxes Amount to be paid Municipal Rate Portioned Assessment How long they will take Cost per frontage foot For each improvement Local Improvements Frontage (for this course) Total to be paid for local improvements Description

  21. Educational Taxes Rates as given Portioned Assessment again… Amount to be paid Provincial Tax #1 – Homeowners Provincial Tax #2 – Farms All property owners pay School Division Tax

  22. Provincial Tax Credits Money given to property owners by the Provincial Government The amount will be given to you if it applies

  23. Summary Just fill in the values from above All taxes added together, credit is subtracted to find taxes due!

  24. Assignment Assignment 4

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