Property Taxes Part III

To expand on the effective millage covered in Part II: What if the total taxable value of property in the city went from $10 million, when the 1.25 mill levy was first passed, to $12 million at the next reappraisal?

In order not to exceed the revenue limit of $12,500 the millage would have to be reduced to 1.041 mills. The voted millage of 1.25 mills now has an effective millage of 1.041 (.001041)

The $100,000 market value, ($35,000 taxable value)) home owner had been paying: 00125 x $35,000 = $43.75 per year in gross taxes for the levy. At the reduced effective rate the owner would pay,.001041 x $35,000 = $36.44.

Note: Inside millage, unlike voted outside millage is never adjusted to an effective rate. The revenue rises and falls with the total taxable value of the district.

For the 2012 tax year, pay 2013, the Wilmington City-Wilmington School District residential property rate including voted outside mills plus inside mills totaled 50.825 mills, however, the effective rate is 43.892925 mills.

Union Township- Wilmington School District rates: Voted and inside 49.675 and Effective 43.36684

Note: Commercial-industrial rates differ from residential to some degree but the methodology remains the same.

Note. Voted levies have several different options for the voters..

Time Limited: Usually for five years at which time the levy must be placed on the ballot to be. a. Renewed at the existing effective rate. b. Replaced at the existing voted rate which nullifies any effective rate changes.(usually results in revenue increases) and c. Continuous no time limit this option saves costs and work involved in a ballot issue. Over the past several years Wilmington city council has made all city voted levies continuous.

All political subdivisions and other public agencies have the legal right to place property tax levies on the ballot. In Clinton County these entities include:

Public school districts, the County, the city, villages, townships and the Port Authority. Separate issues are voted for Senior, Mental health, Health  and Children services as well as Libraries.

In the next and final Part I will beak down each taxing district's levies and adjustments to the gross tax assessment.

Paul Hunter paulhunter45177@gmail.com