Today we learned how to calculate property taxes.
You calculate property taxes by first finding:
a)The assessed Value of the property
b)The tax rate
{Note} Assessed value is not the same as market value. It is simply an artificial valuation set by a provincial tax assessor for taxation purposes.
Mill Rate is how much you pay for every $1000
Example Question
1) The Davies own a home assessed at $80 000. The rate of assessment is 45%. The mill rate is 60 mills and there was a local improvement tax of$210.00 for a sidewalk reconstruction. What was their total tax bill?
$80 000 X .45 = $36 000
You times 80 000 by 45 percent to find the total portion assessment.
$36 000 X 60/ 10000 = $2160
Then you times the total portion assessment by the mill rate but remember the mill rate is for every $1000 so divide by 1000 after multiplying by 60.
$2160 + 210 = $2370
There was also a local improvement tax of$210.00 for a sidewalk so you must add it to your property tax.
$2370 is how much you will have to pay for your property tax.
