Greg Miichalek

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It is a tax on the assessed value of real property. Typically set by school boards, town boards, village boards, and city and county governments. Applies to both homeowners and businesses, although rates and exemptions may differ. Each board determines the total amount of taxes it needs to raise, and then divides that number by the total taxable assessed value of the jurisdiction to determine the tax rate. Your share of the tax is calculated by multiplying the tax rate by your property’s assessed value, minus exemptions. Assessors determine a property’s assessed value. The assessor will estimate your property’s market value (the price it would sell for in the real estate market), and then applies the municipal level of assessment (LOA) to that market value. There are different levels of assessment. If the level of assessment is 100 percent, a $90,000 home will have an assessed value of $90,000. However, if the level of assessment is 50 percent, the same home will have an assessed value of $45,000.