AG classed property has the lowest mill levy, OO is next, and NA has the highest mill levy. The increases between these mills is entirely located in the school districts portion of the mill levy. All other entities (county, fire, etc) charge the same mill to everyone regardless of class.
For example:
Two neighbors both have a house valued at $55,000
The one lives in his home and therefore is an owner occupied (OO) property. His yearly taxes are $1,200.
The second rents his property and is therefore classed as Non-ag (NA). His yearly taxes are $1,500.
Now remember, they both have the same assessed value. The city’s mill levy is the same for everyone regardless of class, therefore they both pay $300 to the city. That is 25% of his total taxes for the first neighbor and 20% of his total taxes for the second neighbor. The percentages look smaller but they are actually paying the same amount. This will be the same for all the mill levy entities except the school.
The school mill levy is lowest for AG, then OO, and highest for NA. So neighbor one, who has owner-occupied (OO), is paying $450 to the school (37.5%), while neighbor two, who is not owner-occupied (NA), is paying $750 to the school (50%).
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