My Property Taxes Are Due – What Is A Mil Anyways?
By Chuck Hyde, Editor of StandBesideHer.com
Depending on what state and local government you live in, you are likely to pay property taxes. Even if you don’t own your own home, you pay the tax. You may think, “I rent an apartment, I don’t have to worry about property taxes”. While it is true you don’t pay the tax directly out of your pocket, you do pay it as part of your monthly rent. This is why, whether you rent or own, you need to pay close attention if you are asked to vote to increase millage taxes. While the reasoning for raising the taxes may be sound and may even be absolutely necessary to operate the schools, fire department, parks, etc. that the tax funds, pay attention and vote, the increase directly effects your finances.
This brings up an important question. What the heck is this millage (or commonly called a mil) thing I am voting on anyways? A mil is defined as 1/1000th of a dollar or 1/10th of a penny. In plain English this means that if the mil is on your house value, for every 1000 dollars the tax is assessed on, you pay one dollar in taxes. Again the taxable value of your house depends on where you live. Typically your local government assesses a value to your house. This may or may not be what the house is worth in the free market, it is based on their assessment taking into account location, age, size, appearance, building materials, etc. This assessment is important to you because it determines what you pay in taxes. With this in mind a homeowner should find out what their assessment is and if there is an appeal process if they do not agree.
Once your house is assessed then a taxable value is placed on it. This too can vary from state to state. The state you live in may tax 50% of your assessed value or use some other percentage or formula. This taxable value is used to determine how much you pay in taxes. An example would be if you lived in an area in which your taxable value was 50% of your assessed value. Let's say your house is assessed at $140,000, and the property tax rate is 20 mils, your tax would be $1400. First you take 50% of $140,000 and you have $70,000. If a mil is one dollar for 1000 dollars of value, you get $70 per mil on a $70,000 taxable value. You then multiply the $70 times the number of mils, 70 X 20 = 1400.
One final note, this all varies by state and locality so check out your local taxing authority to see how your specific taxes are computed. Also, there may be other factors in how your property taxes are levied, set fees, deductions for low income, etc. The bottom line is you have to be proactive and find out for yourself how your taxes are levied and also vote in local elections to help control how and how much you are taxed. I don’t know about you, but I view $1400 as a lot of money and I want to know what I am paying for.
About The Author: Chuck Hyde is editor of StandBesideHer.com. He is also a husband and father of two teenage boys and a younger daughter. His family lives in the northern Midwestern rural United States, where they enjoy camping, fishing, and other outdoor activities together. Chuck is a Registered Nurse in an inner city emergency room and has had a lifelong addiction to politics.
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