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Property Taxes
Property Taxes• Provide the municipality with the funding it
needs to provide services to its residents– Garbage collection, libraries, pools, parks,
police, fire
• Municipalities must calculate at what rate to tax it’s residents.
• Amount of tax you will pay is based on – Value of your property– Value of all the properties in your municipality,– Amount of money needed by the city
Property Tax Terminology
• Assessed Value – the most probable selling price for
a property– varies based on location, building
style, and size of the property.
• Property Classification – Based on its use– Residential, commercial, industrial,
agriculture.
Property Tax Terminology
• Portioned Percentage.– Determined by property classification– A certain percentage of your homes value
used to calculate taxes owing.– Need to know – Residential and Farm!
Code Class Percentage
10 Residential 1 45.0%
20 Residential 2 45.0%
80 Residential 3 45.0%
30 Farm Property 30.0%
40 Institutional 65.0%
51 Pipeline 50.0%
52 Railway 25.0%
70 Golf Course 10.0%
60 Commercial (other) 65.0%
Property Tax Terminology
• Portioned Assessment – Based on portioned percentage
• You are only assessed this percent!• Land and buildings calculated separately
– Rounded to the nearest $10.
– Example• Residential home, assessed at $150,000
– Portioned Assessment = 0.45(150,000) = $67, 500
– Total for all property in a municipality called Total Portioned Assessment
Property Tax Terminology
• Property Tax Rate – Rate at which property owners will
be taxed– can be expressed as a percent, as
cents per dollar, or as a mill rate.• As a percentage
–
• Mill Rate– the rate of tax per $1000– multiply percent by 1000 to express rate in
mills
Total Revenue RequiredProperty Tax Rate Total Portioned Assessment
=
Example 1• Sarah Mahler owns a home in Flin Flon. The
market value assessment of the land is $7350 and the building is $76,500.– Find the portion percentage– Find the total market assessment.– Find the portioned assessment
Example 2• A town requires revenue of
$4,500,000 to be raised from property taxes. The total portioned assessment of all taxable properties is $200,000,000.– Find the tax rate expressed
• As a percentage rate.• In cents per dollar.• In mills.
Education Taxes• Property taxes include
– Municipal taxes– Education taxes
• Taxes charged by both the local school board and the provincial government.
Municipal Taxes• Actual dollar amount of taxes to
be paid– Includes
• General municipal taxes – calculated using the mill rate (rate of tax
per $1000 assessed)
• Local improvement taxes. – based on cost of the improvement per
frontage foot– We will consider frontage to be the width of
the property
Education Taxes• Supports school divisions in the
province.
• Provincial Education Tax #1 or #2– Mill rate set by provincial
government • All property owners only pay one tax
(#1 or #2)
• School Division Tax– Mill rate is set by the local school
division
Example• The Wallace family owns a home with a market value
assessment of $71,500 and a land assessment of $13,500.
• The municipal mill rate is 21.415 mills, the Provincial Education Tax #1 rate is 7.926 mills, and the School Division tax rate is 21.403 mills.
• The property has a frontage of 50 feet. The family is charged local improvement tax for road oiling and lane lighting.
Example – continued• Calculate the total
• Portioned assessed value• Annual municipal taxes• Annual education taxes• Annual municipal and
educational taxes
• $71,500 and $13,500. • Municipal: 21.415 mills• Prov. Ed. Tax #1: 7.926 mills• School Division: 21.403 mills. • 50 feet: local improvement tax
– road oiling – lane lighting.
Statement of Demand for Taxes
• Property tax statement– Outlines your property, and the taxes you
owe.
– Vary slightly from one area to the next but generally the same• Part 1 – Property Description• Part 2 – Municipal Taxes• Part 3 – Education Taxes• Part 4 – Provincial Tax Credit• Part 5 - Summary
Property Description
How much Property on the road
AssessedValue
Values of each individually T- Taxable
For allour
examples
10or30
45%or
30%
You will needto find this!
Municipal Taxes
Portioned Assessment Municipal Rate Amount to be paid
Local Improvements Description
How long they will take
Frontage
(for this course)
Cost per frontage foot
For each improvement
Total to be paid for local
improvements
Educational Taxes
Portioned Assessment
again…
Provincial Tax #1 – HomeownersProvincial Tax #2 – FarmsAll property owners pay School Division Tax
Rates as givenAmount to be
paid
Provincial Tax Credits
Money given to property owners by the Provincial GovernmentThe amount will be given to you if it applies
Summary
Just fill in the values from aboveAll taxes added together, credit is subtracted to find taxes due!
