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Mill Levy Calculations

Several residents have inquired as to how we came up with our calculation that the "cost" of the proposed mill levy increase is $3.41 per month per $100,000 of market valuation and not higher amounts that individuals are calculating themselves.  A great deal of the confusion lies with the fact that in 2018, not only would the mill levy rate change, if voters approve a measure, but the property assessment rate will change (be reduced) as well (Gallagher Amendment).   Residents are already paying a portion of the proposed higher mill levy through the current assessment rate (7.96%)  which will be reduced (7.2%) next year.  Consequently, the net change is less than what it would have been had the property assessment rate not changed as well.

Below are two calculations.  The first is what the cost would be should there have been no change in the statewide assessment rate (7.96%).  The second is the calculation that includes the statewide assessment change and where the $3.41 per month per $100,000 of market value comes from.  A home that has a market value of $300,000 will be used as an example.

UNCHANGED STATE ASSESSMENT RATE (7.96%) WITH THE 6.9 MILL LEVY INCREASE APPROVED
Market Value - $300,000
2018 Assessment Rate - 7.96%
$300,000 x .0796 = $23,880 (Assessed value)

2017 Mill levy rate = 11.5 mills
$23,880 x .0115 = $274.62  (current tax assessment for TLMFPD)

2018 Mill levy rate = 18.4 mills (if approved)
$23,880 x .0184 = $439.39

$439.39 - $274.62 = $164.77/yr ($13.73/mo)  
$13.73 / 3 = $4.58 per month per $100,000 market valuation ($300,000/$100,000)

If the state's assessment rate had not changed for 2018, the tax impact of the proposed mill levy would've been $4.58 per $100,000 market valuation.

CHANGED STATE ASSESSMENT RATE (7.2%) WITH THE 6.9 MILL LEVY INCREASE APPROVED
Market Value - $300,000
2018 Assessment Rate - 7.2%
$300,000 x .072 = $21,600 (Assessed value)

2017 Mill levy rate = 11.5 mills
$23,880 x .0115 = $274.62  (current tax assessment for TLMFPD)

2018 Mill levy rate = 18.4 mills (if approved)
$21,600 x .0184 = $397.44

$397.44 - $274.62 = $122.82/yr ($10.24/mo)  
$10.24 / 3 = $3.41 per month per $100,000 market valuation ($300,000/$100,000)