PREFACE: This compendium was crafted specifically for those interested in public education funding resources. Property tax is a large (although

Transcription

1 PROPERTY TAX COMPENDIUM * PREFACE: This compendium was crafted specifically for those interested in public education funding resources. Property tax is a large (although shrinking) source of those funds. Statewide property taxes, assessment rates, and homestead exemptions were chosen as topics of discussion because they play a large role in the collection of, or drain on, property tax revenues. Following is a note on the three issue areas: (1) STATEWIDE PROPERTY TAXES: For the purposes of this compendium, unless otherwise noted, the only statewide property taxes discussed are those taxes levied on personal real property. Statewide taxes levied on utility, oil and gas, mining, transportation, etc., properties usually are not included. (2) ASSESSMENT RATES: Because assessment rates are typically prescribed by state constitutional or statutory provisions, and because they play a large role in determining the final revenue amount generated by a property tax levy, they are included in this compendium. Millage rates are not included because mill rates are typically determined on a local level, and they typically change from tax year to tax year. (3) HOMESTEAD EXEMPTIONS: State legislatures grant a number of property tax exemptions. Common among them is the homestead exemption, which is typically granted to senior citizens, disabled persons and veterans, or those living in or near poverty. In some instances, however, the homestead exemption is a blanket exemption enjoyed by all owners of real property over which the grantor state claims situs; these blanket exemptions usually are expressed as a reduced assessment rate. CALCULATING THE EFFECTIVE PROPERTY TAX RATE: The effective property tax rate is the amalgamation of all the variables (i.e., assessment values, assessment ratios, millage rates, etc.) that go into determining the final dollar amount a property owner must pay to a taxing jurisdiction. Following is an example of how varying assessment and millage rates across jurisdictions can still arrive at the same effective tax rate for similarly valued pieces of property. In the following example, assume that both tracts of real property are assessed according to their fair market value and, though located in different states, have a comparable value of $200,000: State 1 State 2 Assessed value: $200,000 $200,000 Assessment ratio: 100% 25% New assessed value: $200,000 $50,000 Mill rate: 1.0 mill 4.0 mills Tax due: $2,000 $2,000 Effective tax rate: 1% 1% As demonstrated in the example above, while the assessment rates vary between the two states, a difference in mill rates can produce two similar effective tax rates. 9/12/ :33 AM - 1 -

2 * The following sources were drawn upon to compile this compendium: CCH Inc., 2005 U.S. Master Property Tax Guide. Chicago, Ill.: CHH Incorporated National Conference of State Legislatures. A Guide to Property Taxes: An Overview. Denver, Colo.: National Conference of State Legislatures, National Conference of State Legislatures. A Guide to Property Taxes: Property Tax Relief. Denver, Colo.: National Conference of State Legislatures National Conference of State Legislatures. A Guide to Property Taxes: The Role of Property Taxes in State and Local Finances. Denver, Colo.: National Conference of State Legislatures ALLABAMA The rate of taxation for state purposes is a 3.0 mill levy on the assessed value of taxable property in the state. ALA. CONST. of 1901, art. XIV, 260 (2005). ASSESSMENT RATE: Fair and reasonable market value. ALA. CODE (2005). Class I 30% Utility property used in the business of utility. ALA. CODE (2005). Class II 20% Real and personal property that does not qualify as Class I, Class III, or Class IV property. ALA. CODE (2005). Class III 10% Agricultural and forest property, historic buildings and sites, and residential property. ALA. CODE (2005). Class IV 15% Private passenger automobiles and pickup trucks. ALA. CODE (2005). Jurisdiction State Exemption of $4,000 assessed value (equivalent of $40,000) on state property taxes. ALA. CODE (2005). State 65 and over Full exemption from state property taxes. ALA. CODE (2005). $12,000 Local 65 and under Exemption up to $2,000 assessed value (equivalent of $20,000) from county taxes. In addition municipalities may exempt another $2,000 ($20,000). ALA. CODE (2005). Local 65 and over Exemption up to $5,000 assessed value (equivalent of $50,000). ALA. CODE (2005). $12,000 Local 65 and over Full exemption from local property taxes if federal adjusted gross income is less than $7,500. ALA. CODE (2005). $7,500 ALLASSKA Alaska levies an annual 20 mills statewide property tax on oil and gas property. ALASKA STAT /12/ :33 AM - 2 -

3 ASSESSMENT RATE: Full and true value. ALASKA STAT , No classification 100% All property is taxed at 100 percent of its full and true value. NOTE: 100 percent of the valuation of non-petroleum based property in the district is the assessment rate. Local districts are required to file annual data that the Alaska Department of Community and Regional Affairs uses to compute the full valuation of property in the district. ALASKA STAT Local option exemption of up to $20,000 assessed value. ALASKA STAT (a) 65 and over, disabled vets Exemption of up to $150,000 assessed value. Municipalities may provide for an exemption beyond $150,000 in hardship cases. ALASKA STAT (e) NOTE: Renters age 65 and over are eligible for a renter relief program calculated according to rent paid and the property tax rate. ALASKA STAT ARIIZZONA ASSESSMENT RATE: Full cash value or limited property value. ARIZ. REV. STAT. ANN Class one 24.5% (24% from 12/31/06 to 12/31/07) Mining, utilities, commercial, and telecommunications property. ARIZ. REV. STAT. ANN , Class two 16% Agricultural and non-profit property. ARIZ. REV. STAT. ANN , Class three 10% Residential property. ARIZ. REV. STAT. ANN , Class four 10% Rented residential property. ARIZ. REV. STAT. ANN , Class five 5% Railroad and flight property. ARIZ. REV. STAT. ANN , Class six 5% Special purposes property. ARIZ. REV. STAT. ANN , Class seven 1% Commercial historic property. ARIZ. REV. STAT. ANN , Class eight 1% Historical / residential property. ARIZ. REV. STAT. ANN , Class nine 1% Possessor interests on government properties that are used primarily for athletic, recreational, entertainment, artistic, cultural or convention activities, 9/12/ :33 AM - 3 -

4 and aviation purposes. ARIZ. REV. STAT. ANN , Credit of 37 percent of school taxes. Maximum tax rebate is $540. ARIZ. REV. STAT. ANN ARKANSSASS ASSESSMENT RATE: True and full market or actual value. ARK. CODE ANN (c) All real and tangible personal property is assessed at 20 percent of its "true and full market or actual value." ARK. CODE ANN (c) (2006), ARK. CONST. of 1874 art. XVI, 5 However, agricultural, pasture, timber, and vacant residential and commercial property is assessed according to its use value. ARK. CODE ANN (2006), ARK. CONST. of 1874 art. 16, 15 Credit of $300. ARK. CODE ANN (a)(1)(A) NOTE: State law permits a community to build buildings, sell bonds and forgive taxes, including school taxes for 5 years to attract industry. ARK. CODE ANN CCALLIIFFORNIIA ASSESSMENT RATE: Full value. CAL. REV. & TAX. CODE 401 Taxable property is assessed at the same percentage of fair market value. When a value standard other than fair market value is prescribed by state constitution or by statute, the same percentage is applied to determine the assessed value. The value to which the percentage is applied, whether it be the fair market value or not, is known for property tax purposes as the full value. CAL CONST. art XIII 1 All property is valued at 100 percent of its full value. CAL. REV. & TAX. CODE 135 Privately owned homes are eligible for the $7,000 Homeowners' Property Tax Exemption. CAL. REV. & TAX. CODE 218 CCOLLORADO 9/12/ :33 AM - 4 -

5 ASSESSMENT RATE: Actual Value. COLO. REV. STAT (2005). Property is assessed at 29 percent of its actual value, except for residential property. COLO. REV. STAT (1) (2005). For the years after January 1, 2005, but before January 1, 2007, residential property is assessed at 7.96 percent of its actual value; and, total residential property assessment cannot exceed percent of total property assessment for those same years. COLO. REV. STAT (3)(j) (2005). 65 and over Exemption applies to 50 percent of the first $200,000 of actual value if resident has lived in home for at least 10 years. COLO. REV. STAT (2005). CCONNEECCTTIICCUTT ASSESSMENT RATE: True and actual value. CONN. GEN. STAT Real property is uniformly assessed at 70 percent of its true and actual value. CONN. GEN. STAT and over Municipalities are authorized to grant homestead tax relief. CONN. GEN. STAT D, A DEELLAWAREE ASSESSMENT RATE: True value in money. DEL. CODE ANN. tit. 9, 8306 All real property is assessed at 100 percent of its true value in money. DEL. CODE ANN. tit. 9, and over Municipalities can exempt elderly residents from municipal property taxes to an extent determined by the municipality. DEL. CODE ANN. tit. 22, and over A credit against school taxes assessed against principal residences is available for 50% of such taxes or $500, whichever is less, if authorized by a majority vote of the whole school board of the local school district. DEL. CODE ANN. tit. 14, 1919 DIISSTTRIICCTT OFF CCOLLUMBIIA ASSESSMENT RATE: Estimated market value for real property. D.C. CODE , /12/ :33 AM - 5 -

6 Class 1 $0.92 for each $100 of assessed value Class 2 $1.85 for each $100 of assessed value Class 3 $5.00 for each $100 of assessed value Residential property. D.C. Code (b-7)(1), (c-6)(2) Commercial real property. D.C. Code (b-7)(2), (c-6)(3) All real property which cannot be classified as either Class 1 or Class 2 property. D.C. Code (b-7)(3), (c-6)(4) Exemption of up to $38,000 on 100 percent of assessed value. D.C. CODE Qualified low-income residents are eligible for a five-year property tax exemption. D.C. CODE , (2006); D.C. MUN. REGS. tit. 9, 335 (1998). Cannot exceed 120% of area median income 65 and over Decrease in property tax liability of 50 percent if household adjusted gross is less than $100,000. D.C. CODE (2006); D.C. MUN. REGS. tit. 9, 338 (1998). $100,000 FFLLORIIDA ASSESSMENT RATE: Just valuation. FLA. CONST. art. VII, 4 (2005). All property is assessed at 100 percent of its just valuation and is not allowed to be assessed at a lower rate. FLA. STAT (2005). Homestead property shall be assessed at just value as of January 1, Property receiving the homestead exemption after January 1, 1994, shall be assessed at just value as of January 1 of the year in which the property receives the exemption. Annual increases in the assessment of homestead property are limited to 3 percent of the prior year s assessed value or, if lower, the percentage change in the Consumer Price Index for the prior year, as long as there is no change in ownership during the prior year. FLA. STAT (2005). Exemption up to $25,000 of assessed value. FLA.STAT (2005). 65 and over Additional $25,000 exemption. FLA.STAT (2005). $20,000 GEEORGIIA ASSESSMENT RATE: Fair market value. GA. CODE ANN Property in Georgia is assessed at 40 percent of the current fair market value. GA. CODE ANN /12/ :33 AM - 6 -

7 Exemption to the amount of $2,000 assessed value (equivalent of $5,000). GA. CODE ANN Homeowners who qualify for the homestead exemption also are qualified to receive the homeowner s tax relief credit of $8,000 in The credit will be increased by $2,000 per year until the total credit reaches $18,000 (provided funds are available). GA. CONST. art. VII, IIA, para. I 62 and over Additional exemption up to $10,000 of assessed value ($25,000 equivalent) of property in an independent school district or county school district. GA. CODE ANN and over Exemption equal to the amount of the assessed value of a homestead that exceeds the assessed value of that homestead for the tax year immediately preceding the tax year in which this exemption is first granted. This exemption replaces all other homestead exemptions. GA. CODE ANN and over Additional exemption up to $4,000 ($10,000 equivalent) from state and county taxes. GA. CODE ANN $10,000 $30,000 $10,000 HAWAII II ASSESSMENT RATE: Fair market value of the property. HAW. REV. STAT Real property is assessed at 100 percent of its fair market value per county ordinance. HAW. REV. STAT. 246A-1, Jurisdiction Statewide Exemption up to $12,000. HAW. REV. STAT Statewide 60 to 69 Exemption up to $24,000. HAW. REV. STAT Statewide 70 and over Exemption up to $30,000. HAW. REV. STAT City/County of Honolulu City/County of Honolulu City/County of Honolulu City/County of Honolulu Exemption up to $80,000. HONOLULU, HAW. REV. ORDINANCES ch. 8, art. 10, 4 65 and over Exemption up to $120,000. HONOLULU, HAW. REV. ORDINANCES ch. 8, art. 10, 4 75 to 79 Exemption up to $140,000. HONOLULU, HAW. REV. ORDINANCES ch. 8, art. 10, 4 80 to 84 Exemption up to $160,000. HONOLULU, HAW. REV. ORDINANCES ch. 8, art. 10, 4 80% or under of area median income. 80% or under of area median income. City/County of 85 and 89 Exemption up to $180,000. HONOLULU, HAW. REV. ORDINANCES ch. 80% or under of area median 9/12/ :33 AM - 7 -

8 Honolulu 8, art. 10, 4 income. City/County of Honolulu 90 and over Exemption up to $200,000. HONOLULU, HAW. REV. ORDINANCES ch. 8, art. 10, 4 80% or under of area median income. IIDAHO ASSESSMENT RATE: Market value. IDAHO CODE ANN All real property subject to property taxation is valued and taxed based upon its market value as of January 1 of each tax year. IDAHO CODE. ANN , Exemption is lesser of $50,000 or 50 percent of value for residential improvements. IDAHO CODE ANN G IILLLLIINOIISS ASSESSMENT RATE: Fair cash value. 35 ILL. COMP. STAT. 200/9-145 (2005). Real property (except in Cook County) is assessed at 33.3 percent of fair cash value. Cook County employs its own classification and assessment regimes. 35 ILL. COMP. STAT. 200/9-145 (2005). Exemption in homesteads, limited to a reduction in the equalized assessed value of homestead property equal to the increase in such value for 1978 and subsequent years above the equalized assessed value of such property for 1977, up to a maximum of $5,000 in all counties. Property is assessed at 33.3 percent of its fair cash value (excepting Cook County). 35 ILL. COMP. STAT. 200/ (2005); 35 ILL. COMP. STAT. 200/9-145 (2005). 65 and over Exemption limited to a $3,500 maximum reduction from equalized or assessed value starting in year Property is assessed at 33.3 percent of its fair cash value (excepting Cook County). 35 ILL. COMP. STAT. 200/ (2005); 35 ILL. COMP. STAT. 200/9-145 (2005). NOTE: Cook County assesses property at various rates according to use and classifies property according to a ten-tier system. IINDIIANA 9/12/ :33 AM - 8 -

9 The state may not impose a tax rate on tangible property in excess of $ on each $100 of assessed valuation. IND. CODE ASSESSMENT RATE: True tax value. IND. CODE (2005). All property is assessed at 100 percent of its true tax value. IND. CODE (2005). A homestead credit is allowed at a rate of 20 percent. The total deduction that may be received for any year is the lesser of one-half the assessed value of the real property or $35,000. IND. CODE (2005); IND. CODE (2005). 65 and over Exemption of $12,480 or the lesser of one-half the assessed value. $25,000 The value of the property may not exceed $144,000. IND. CODE (2005). IIOWA ASSESSMENT RATE: Actual value. IOWA CODE (2005). Taxable property is assessed at 100 percent of its actual value, unless otherwise stated in statute, e.g., agricultural, commercial, residential, and special purpose industrial properties have their own unique valuation. IOWA CODE (2005). Credit in an amount equal to the levy on the first $4,850 of actual value. IOWA CODE (2005). KANSSASS Permanent state tax levies include: (1) a 1 mill levy for state educational institutions; (2) a 0.5 mill levy for state institutions caring for the mentally ill, retarded and visually handicapped; and, (3) a 0.25 mill levy for state correctional institutions. KAN. STAT. ANN. 76-6b01, 76-6b04, 76-6b09 (2005). ASSESSMENT RATE: Fair market value. KAN. STAT. ANN a (2005). 9/12/ :33 AM - 9 -

10 Properties are adjusted annually for current value market, with a physical reinspection every four years. The Division of Property Valuation also conducts annual sales-toassessment ratios. KAN. STAT. ANN , (2005). Property is assessed at the following rates (KAN. STAT. ANN (2005)): Class % Residential property. Class 2 30% Agricultural property. Class 3 12% Vacant lots. Class 4 12% Property owned by nonprofits. Class 5 33% Public utility real property. Class 6 25% Commercial and industrial property. Class 7 30% Other real property. See description Persons eligible for the homestead refund must be: (1) A person having a disability; (2) a person who is 55 years of age or older or (3) a person other than a person included under (1) or (2) having one or more dependent children under 18 years of age residing at the person's homestead during the calendar year immediately preceding the year in which a claim is filed. KAN. STAT. ANN (2005). The refund is based on annual household income up to a maximum of $26,300. KAN. STAT. ANN (2005). The refund cannot exceed $600. KAN. STAT. ANN (2005). $26,300 KEENTTUCCKYY The state tax rate on real property is $0.315 cents per $100 of valuation. KY. REV. STAT. ANN (LEXISNEXIS 2006). ASSESSMENT RATE: Fair cash value. KY. CONST. 172 (2005). All property is assessed at 100 percent of its fair cash value. Classification is achieved through differential tax rates. KY. CONST. 172 (2005). 65 and over ( totally disabled also eligible) Exemption up to $29,400. KY. REV. STAT. ANN (LEXISNEXIS 2006). LLOUIISSIIANA ASSESSMENT RATE: Fair market value, or use value. LA. CONST. of 1974, art. VII, 18(f) (2004). See also LA. REV. STAT. ANN. 47:2301, 47:2322 9/12/ :33 AM

11 N/A 10% Land, generally. LA. REV. STAT. ANN. 47:1854 N/A 10% Residential improvements. LA. REV. STAT. ANN. 47:1854 N/A 15% Electric cooperative properties (excluding land). LA. REV. STAT. ANN. 47:1854 N/A 25% Public service property (excluding land). LA. REV. STAT. ANN. 47:1854 N/A 15% Other property. LA. REV. STAT. ANN. 47:1854 N/A 10% (of use value) Agriculture, marsh and timber land. LA. REV. STAT. ANN. 47:2307 Exemption up to $7,500 of assessed value ($75,000 equivalent). LA. CONST. of 1974, art. VII, 20 (2004). Does not apply to municipal taxes except in Orleans Parish. LA. REV. STAT. ANN. 47: and over Property value assessment frozen at level of first qualifying year. LA. CONST. of 1974, art. VII, 18(G) (2004). $56,744 MAIINEE ASSESSMENT RATE: Just value. MAINE CONST. art. IX, 8 (2005). Property is assessed at 100 percent of its just value. MAINE CONST. art. IX, 8 (2005). Exemption of up to $13,000 assessed value. ME. REV. STAT. ANN. tit. 36, 683 (2005). MARYYLLAND The state levy on real property is 21 cents per $100 of assessed valuation. MD. CODE ANN., TAX-PROP (LEXISNEXIS 2005). ASSESSMENT RATE: Full cash value. MD. CODE ANN., TAX-PROP (LEXISNEXIS 2005). Real property tax rates, for purposes of application against the full value assessment, is 40 percent of the real property tax rates. MD. CODE ANN., TAX-PROP (LEXISNEXIS 2005). 9/12/ :33 AM

12 60 and over The property tax credit is the total real property tax of the home, less the percentage of the homeowner s income ranging from 1% of $4,000 to 9% of $16,000 and over. MD. CODE ANN., TAX-PROP (LEXISNEXIS 2005). $200,000 MASSSSACCHUSSEETTTTSS ASSESSMENT RATE: Fair cash value. MASS. ANN. LAWS ch. 59, 2A (LEXISNEXIS 2006). Class one 100% Residential property. MASS. ANN. LAWS ch. 40, 56, ch. 59, 38 (LexisNexis 2006). Class two Varies Open space land. MASS. ANN. LAWS ch. 40, 56, ch. 59, 38 (LexisNexis 2006). NOTE: The four classes may be assessed, rated, and taxed differently but must be proportional within each class. MASS. ANN. LAWS ch. 40, 56 (LEXISNEXIS 2006). Class three Varies Commercial property. MASS. ANN. LAWS ch. 40, 56, ch. 59, 38 (LexisNexis 2006). Class four Varies Industrial property. MASS. ANN. LAWS ch. 40, 56, ch. 59, 38 (LexisNexis 2006). A city or town may offer a homestead credit not to exceed 20 percent of average assessed value of residential property in that city or town. MASS. ANN. LAWS ch. 59, 5C (LEXISNEXIS 2006). 70 and over Exemption of $4,000 assessed value or $500, whichever is greater, provided value of the estate is not greater than $20,000 (local option up to $40,000 to increase benefits). MASS. ANN. LAWS ch. 59, 5 (LEXISNEXIS 2006). MIICCHIIGAN A state education tax is imposed on all taxable property at a rate of 6 mills. MICH. COMP. LAWS ASSESSMENT RATE: True cash value. MICH. COMP. LAWS Property is assessed at 50 percent of its true cash value. MICH. COMP. LAWS a(1) A principal residence is exempt from the tax levied by a local school district for school operating purposes. MICH. COMP. LAWS 211.7cc 9/12/ :33 AM

13 The principal residence of persons who, by reason of poverty, are unable to contribute toward the public charges is eligible for exemption in whole or in part from taxation. MICH. COMP. LAWS 211.7u Must meet the annual federal poverty guidelines MIINNEESSOTTA A statewide property tax is imposed on business real property and on cabins. The total levy amount is set to grow annually by the amount of inflation; therefore, the rate will vary from year to year. MINN. STATS (2005). ASSESSMENT RATE: Market value. MINN. STATS (2005). Class 1a (residential) Class 1b (residential) Class 1c (residential) 1% of first $500K of value, 1.25% on additional value.45% of first $32K of value, then Classes 1a or 2a apply Apply Class 1a rate Residential homestead property. MINN. STATS (2005). Homesteads of blind persons or qualifying disabled persons. MINN. STATS (2005). Commercial-use real property devoted to temporary and seasonal residential occupancy. MINN. STATS (2005). Class 1d (residential) Apply Class 1a rate Farmworker housing. MINN. STATS (2005). Class 2a (agricultural).55% of first $600K of value, 1% on additional value Agricultural land. NOTE: The market value of a farm s house and garage immediately surrounding one acre of land is subject to Class 1a rates. MINN. STATS (2005). Class 2b (agricultural) 1% Certain timberland, non-homestead agricultural land, or airport land. MINN. STATS (2005). Class 3a (commercial) Class 3b (commercial) 1.5% of first $150K of value, 2% on additional value Apply Class 3a rate Commercial and industrial property and utility real and personal property. MINN. STATS (2005). Employment property located in within state-designated enterprise zones. MINN. STATS (2005). Class 4a (misc. real estate) Class 4b (misc. real estate) 1.25% Apartments of four or more units and non-exempt hospitals. MINN. STATS (2005). 1.65% Residential property containing less than four units. MINN. STATS (2005). Class 4bb (misc. real estate) 1.2% of first $76K of value, 1.65% on additional value Non-homestead single-unit residential real estate that is not seasonal residential or recreational; and a single family dwelling, garage, and surrounding one acre of property located on a non-homestead farm. MINN. STATS (2005). Class 4c (misc. real estate) 1.65% Commercial resorts, qualifying golf courses, certain non-profit community service organization property, qualified postsecondary student housing, manufactured home parks, and metropolitan indoor fitness or recreational property. MINN. STATS (2005). 9/12/ :33 AM

14 Class 4d (misc. real estate) 1% Qualifying low-income rental housing. MINN. STATS (2005). Class 5 (misc.) 3.4% Catch-all category that includes unmined iron ore and low-grade ironbearing formations, as well as all other property not otherwise classified. MINN. STATS (2005). Qualifying seniors or disabled persons A claimant whose property taxes are in excess of a percentage of specified household income pays an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the specified state refund. The maximum refund is $1,450. MINN. STATS. 290A.04 (2005). If the gross property taxes payable on a homestead increase more than 12 percent over the property taxes payable in the prior year on the same property that is owned and occupied by the same owner on January 2 of both years, and the amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed an additional refund equal to 60 percent of the amount of the increase over the greater of 12 percent of the prior year's property taxes payable or $100. The maximum refund under this category is $1,000. MINN. STATS. 290A.04 (2005). $77,520 for homeowners MIISSSSIISSSSIIPPPPII ASSESSMENT RATE: True value, or market value. MISS. CONST. art. IV, 112 (2006), MISS. CODE ANN Class 1 10% Residential property. MISS. CODE ANN (1) Class 2 15% All non-residential real property. MISS. CODE ANN (2) Class 3 15% Personal property (except motor vehicles). MISS. CODE ANN (2) Class 4 30% Public utility property. MISS. CODE ANN (3) Class 5 30% Motor vehicles. MISS. CODE ANN (3) Exemption for the first $7,500 of assessed value ($75,000). This exemption also translates to a $300 credit. MISS. CODE ANN and over An additional exemption of $7,500 to the regular homestead exemption is available to qualified seniors. MISS. CODE ANN MIISSSSOURII 9/12/ :33 AM

15 ASSESSMENT RATE: True value in money. MO. CONST. art. X, 4(b) (2005). N/A 19% Real residential property. MO. REV. STAT (2005). N/A 12% Real agricultural property. MO. REV. STAT (2005). N/A 32% Real utility, industrial, commercial and railroad property. MO. REV. STAT (2005). N/A 0.5% Grain and crops. MO. REV. STAT (2005). N/A 12% Livestock. MO. REV. STAT (2005). N/A 12% Farm machinery. MO. REV. STAT (2005). N/A 5% Historic motor vehicles and aircraft. MO. REV. STAT (2005). N/A 12% Poultry. MO. REV. STAT (2005). N/A 25% Pollution control and retooling equipment. MO. REV. STAT (2005). N/A 33.3% Intangible personal property. MO. REV. STAT (2005). 65 and over Qualified seniors may obtain a property tax credit for an increase in their taxes that exceeds 5 percent in a reassessment year or 2.5 percent in a non-reassessment year. MO. REV. STAT (2005). $70,000 MONTTANA The state levies a 6 mill statewide tax for the Montana university system, plus an additional 40 mill statewide tax for school finance equalization. The tax levy for the university system expires January 1, MONT. CODE ANN , (2005). ASSESSMENT RATE: Market value. MONT. CODE ANN (2005). Classification Taxable Value Property Description Class 1 100% Real residential property. MONT. CODE ANN (2005). Class 2 3% Real agricultural property. MONT. CODE ANN (2005). Class 3 Apply Class 4 rate (currently 3.14%) Agricultural land. MONT. CODE ANN (1)(a) (2005). Apply Class 4 rate (currently 3.14%) Nonproductive mining claims. MONT. CODE ANN (1)(b) (2005). 7 times Class 4 rate (currently 21.98%) Nonagricultural land between 20 and 160 acres. MONT. CODE ANN (1)(c) (2005). Class % (2006), 3.07 (2007), 3.01 (after Residential, commercial and industrial land and improvements, golf courses, idle agricultural and timber processing property, and nonagricultural land between 20 and 160 acres. NOTE: Different rates apply to residences of lower-income persons. MONT. 9/12/ :33 AM

16 2007) CODE ANN (2005). Class 5 3% Property owned and used by domestic cooperative rural electrical and telephone associations, new industrial property, and certain pollution control equipment. MONT. CODE ANN (2005). Class 6 Ratio phased out Livestock, certain personal property held for rental or lease, and machinery and equipment used in canola-seed oil processing facilities or malting barley facilities. Class 7 8% Property owned by cooperative rural electrical associations that serve less than 95 percent of the electricity consumers within the incorporated limits of a city or town, and specified property owned by non-centrally assessed public utilities. MONT. CODE ANN (2005). Class 8 3% xempt business personal property. NOTE: Starting in 2004, Class 8 property tax rate is to decrease by 1 percent each year until entirely phased out. MONT. CODE ANN (2005). Class 9 12% Certain property of centrally assessed utilities. MONT. CODE ANN (2005). Class % Forest lands. MONT. CODE ANN (2005). Class 11 Repealed in Class 12 12% Railroad and airline transportation property. MONT. CODE ANN (2005). Class 13 6% Certain electrical generation facilities and centrally assessed telecommunications services companies. MONT. CODE ANN (2005). Class 14 3% Certain wind power generation facilities. MONT. CODE ANN (2005). All residential properties receive an exemption of 32.6 percent for 2006, 33.2 percent for 2007, and 34 percent for 2008 and thereafter. MONT. CODE ANN (2005). 62 and over A residential property tax credit against personal income tax is available for seniors whose household income is less than $35,000. The credit may not exceed $1,000. MONT. CODE ANN (2005). $35,000 NEEBRASSKA ASSESSMENT RATE: Actual value. NEB. REV. STAT (2005), 350 NEB. ADMIN. CODE (2005). N/A 100% Residential property. NEB. REV. STAT (2005). N/A 100% Personal property (excluding motor vehicles). NEB. REV. STAT (2005). N/A 80% Agricultural property. NEB. REV. STAT (2005). 9/12/ :33 AM

17 65 and over Exemption is the taxable value of the homestead up to $40,000 or 80 percent of the average value of homes in the county, whichever is greater. Exemption varies with income. NEB. REV. STAT (2005). Varies NOTE: To be eligible, the homestead maximum value may not exceed $95,000 or 150 percent of the average value of single family residential property in the county, whichever is greater, plus $20,000. NEB. REV. STAT (2005). NEEVADA In 2005, the legislature established two statewide ad valorem taxes: the first levy is $ cents per $100 of assessed value, and the second levy is $ per $100 of assessed value. Revenues generates by both levies are earmarked exclusively to service debt. NEV. REV. STAT (2006), S.B. 524, 73rd Leg. Reg. Sess. (Nev. 2005). ASSESSMENT RATE: Taxable value. NEV. REV. STAT No classifications. All property in Nevada is assessed at 35 percent of taxable value. NEV. REV. STAT and over If the amount of the taxpayer s household income is at or below the federal poverty level for a family unit of one or two, the taxpayer is entitled to a refund of 100 percent of the property taxes accrued. $24,016 If the amount of the taxpayer s household income is above the federal poverty level for a family unit of one or two, the taxpayer is entitled to a refund of a percentage of the property taxes accrued based on a graduated schedule adopted by the Nevada Department of Taxation. NEV. REV. STAT. 427A.515 NOTE: The amount of the refund must not exceed the amount of the accrued property tax or $500, whichever is less. NEEW HAMPPSSHIIREE Every year the tax commission must set the statewide enhanced education tax rate at a level sufficient to generate revenue of $363,000,000 when imposed on all taxable persons and property. The rate shall be set to the nearest 1/2 cent. N.H. REV. STAT. ANN. 76:3 ASSESSMENT RATE: Full and true value of money. N.H. REV. STAT. ANN. 75:1 New Hampshire assesses all property at 100 percent of its full and true value of money, and does not differentiate classes of property at different assessment ratios or tax rates. N.H. REV. STAT. ANN. 75:1 9/12/ :33 AM

18 65 and over Exemption of at least $5,000 if income is below $13,400 for a single household or $20,400 for a married household, and asset value is below $35,000. N.H. REV. STAT. ANN. 72:39-b $13,400 / $20,400 NEEW JJEERSSEEYY ASSESSMENT RATE: True value. N.J. Stat. Ann. 54:4-2.25, 54: New Jersey statute does not outline a specific classification system. N.J. STAT. ANN. 54:4-2.25, 54: County boards of taxation create ratios that must be in multiples of 10 percent, not lower than 20 percent or higher than 100 percent. N.J. STAT. ANN. 54: Homestead rebate amounts range from $500 to $1200 depending on taxpayer s annual gross income. N.J. STAT. ANN. 54: and over Credit of up to $250. N.J. STAT. ANN. 54: $10,000 NOTE: Beginning in 2004, the NJSAVER rebate was combined with the Homestead rebate. Homeowners may not receive both the New Jersey SAVER exemption and the Homestead Property Tax Rebate (circuit breaker program). They will receive whichever one is larger. NEEW MEEXIICCO ASSESSMENT RATE: Market value. N.M. STAT. ANN (LexisNexis 2006). All property is subject to taxation at percent of its assessed value. N. M. STAT. ANN , (LEXISNEXIS 2006). Exemption up to $2,000 assessed value ($6,000 equivalent). N.M. STAT. ANN (LEXISNEXIS 2006). NEEW YYORK ASSESSMENT RATE: Value of property in its current use. N.Y. REAL PROP. TAX LAW 305 New York state law provides that all property within a municipality be assessed at a uniform percent of market value. The level of assessment 9/12/ :33 AM

19 can be 5 percent, 20 percent, 50 percent, or any other percent up to 100 percent. Therefore, assessment ratios vary across the state. Up to $30,000 assessed value is exempt from school taxes. N.Y. REAL PROP. TAX LAW and over Up to $50,000 assessed value is exempt from school taxes. N.Y. REAL PROP. TAX LAW and over Local option exemption up to 50 percent assessed value. The law allows each county, city, town, village or school district to set the maximum income limit at any figure between $3000 and $20,500. Localities have the further option of granting an exemption of less than 50% to senior citizens whose incomes exceed the local income limit up to $28,900. N.Y. REAL PROP. TAX LAW 467 Varies NORTTH CCAROLLIINA ASSESSMENT RATE: True value. N.C. GEN. STAT No specific classes except for historic property, which is assessed at 50 percent. N.C. GEN. STAT , Agricultural, horticultural, and woodland property is assessed according to its present-use value. N.C. GEN. STAT and over Exemption on the greater of $20,000 or 50 percent of appraised value. N.C. GEN. STAT $18,000 NORTTH DAKOTTA ASSESSMENT RATE: True and full value. N.D. CENT. CODE Class 1 9% Residential property. N.D. CENT. CODE Class 2 10% Agricultural property. N.D. CENT. CODE See also N.D. CENT. CODE Class 3 10% Commercial property. N.D. CENT. CODE Class 4 10% All centrally assessed property except wind turbine generators. N.D. CENT. CODE Class 5 3% Centrally assessed wind turbine generators. N.D. CENT. CODE /12/ :33 AM

20 65 and over Qualified seniors are eligible for a reduction of assessment value according to a graduated schedule. The schedule varies from a 100 percent valuation reduction to a 20 percent reduction, based on income. N.D. CENT. CODE $14,500 OHIIO ASSESSMENT RATE: True value. OHIO REV. CODE ANN (LEXISNEXIS 2006). No specific classes. Generally, most property is assessed at 35 percent and cannot be assessed at a higher rate. OHIO REV. CODE ANN (LEXISNEXIS 2006). Real property taxes on homesteads are reduced by 12.5 percent. OHIO REV. CODE ANN (LEXISNEXIS 2006). 65 and over Reduction in assessed value by the lesser of a percentage (up to 75 percent) or flat amount up to $5,000 (equivalent to $14,285) $25,400 (for 2002) adjusted annually depending on income. OHIO REV. CODE ANN (LEXISNEXIS 2006). OKLLAHOMA ASSESSMENT RATE: Fair cash value. OKLA. STAT. tit. 68, 2817(A) (2005). N/A 10 to 15% Tangible personal property. OKLA. CONST. tit. X, 8 (2005). N/A 11 to 13.5% Real property. OKLA. CONST. tit. X, 8 (2005). N/A Varies All other property which is assessed by the State Board of Equalization shall be assessed at the percentage of its fair cash value at which it was assessed on January 1, OKLA. CONST. tit. X, 8 (2005). Exemption of $1,000 of assessed value (has higher equivalent value). OKLA. STAT. tit. 68, 2889 (2005). Additional exemption of $1,000 of assessed value if household income is $20,000 or less. OKLA. STAT. tit. 68, 2890 (2005). $20,000 OREEGON 9/12/ :33 AM

21 ASSESSMENT RATE: Real market value. OR. REV. STAT State statute requires Oregon assessors to assign real property to one of ten property classifications. All property is assessed at 100 percent of its real market value despite the property s assigned classification. OR. REV. STAT (1)(c) The ten classes of property are: (1) residential; (2) commercial; (3) industrial; (4) tract; (5) farm and range; (6) forest; (7) multi-family; (8) recreation; (9) exempt; and (10) miscellaneous. OR. ADMIN. R (1)-(A) Oregon only provides a homestead exemption for qualifying veterans, their spouses, and their dependant children. OR. REV. STAT PPEENNSSYYLLVANIIA ASSESSMENT RATE: Actual value. 72 PA. STAT. ANN , (2005). All real property receives uniform tax treatment within the same class of subjects and cannot exceed 100 percent of its actual value. PA. CONST. art. VIII, 1 (2005), 72 Pa. Stat. Ann (2005). Ratios vary by county. Id. Local option homestead exemption may be no larger than one-half of the median assessed value of homestead property. PA. CONST. art. VIII, 2 (2005). RHODEE IISSLLAND ASSESSMENT RATE: Fair and full cash value. R.I. GEN. LAWS Rhode Island statute does not provide for a unified classification and assessment ratio regime. Rather, cities employ their own varying systems guided by state statute. R.I. GEN. LAWS Local governments may provide exemptions; the exemptions vary widely from jurisdiction to jurisdiction. SSOUTTH CCAROLLIINA 9/12/ :33 AM

22 ASSESSMENT RATE: True value in money. S.C. CODE ANN (2005). Class % Real and personal property belonging to manufacturers, utilities and mining operations. S.C. CONST. art. X, 1(1) (2005). Class 2 9.5% Real and personal property belonging to transportation companies. S.C. CONST. art. X, 1(2) (2005). Class 3 4% Residential property. S.C. CONST. art. X, 1(3) (2005). Class 4 4 to 6% Agricultural property. S.C. CONST. art. X, 1(4) (2005). Class 5 6% All other real property. S.C. CONST. art. X, 1(5) (2005). Class 6 6% Business inventories. S.C. CONST. art. X, 1(6) (2005). Class 7 5% Farm machinery and equipment. S.C. CONST. art. X, 1(7) (2005). Class % All other personal property. S.C. CONST. art. X, 1(8) (2005). Residential property is exempt from property taxes (up to $100,000) levied for school operations. S.C. CODE ANN (2005). 65 and over Exemption of $50,000 of fair market value. S.C. CODE ANN (2005). SSOUTTH DAKOTTA ASSESSMENT RATE: True and full value. S.D. CODIFIED LAWS The median sales to assessment ratio of all real property may not be less than 85 percent or more than 100 percent. S.D. CODIFIED LAWS Owner-occupied single-family dwellings receive a unique classification for purposes of applying a ceiling on school district taxes. S.D. CODIFIED LAWS and over Eligible seniors living in multi-family homes can claim a refund not to exceed 55 percent (35 percent for those seniors living in single-family homes) of property taxes paid on their primary residence. Eligibility is subject to income and residency restrictions. S.D. CODIFIED LAWS 10-18A-2 $12,750 ($9.750 for single-family homes) TTEENNEESSSSEEEE ASSESSMENT RATE: Market value. TENN. CODE ANN (2005). 9/12/ :33 AM

23 N/A 55% Public utility property. TENN. CONST. art. II, 28 (2005). N/A 40% Industrial and commercial real property. TENN. CONST. art. II, 28 (2005). N/A 25% Residential property. TENN. CONST. art. II, 28 (2005). N/A 25% Farm real property. TENN. CONST. art. II, 28 (2005). N/A 55% Public utility tangible personal property. TENN. CODE ANN (2005). N/A 30% Industrial and commercial tangible personal property. TENN. CODE ANN (2005). N/A 5% All other tangible personal property. TENN. CODE ANN (2005). N/A 40% Intangible personal property. TENN. CONST. art. II, 28 (2005). 65 and over Exemption on first $18,000 of full market value. TENN. CODE ANN , (2005). $12,000 TTEEXASS ASSESSMENT RATE: Market value. TEX. TAX CODE ANN (2005). Texas does not employ a classified property system under which different classes of property are taxed at different percentages of their value. Exemption of $3,000 appraised value for county purposes and exemption of $15,000 appraised value for school districts. Taxing units may exempt a percentage of the appraised value of a residence (minimum exemption, $5,000) but not to exceed 20 percent. TEX. TAX CODE ANN (2005). 65 and over Exemption of $25,000 appraised value for school district purposes and a minimum exemption of $3,000 Appraised value by local governments. Taxing units may exempt a percentage of the appraised value of a residence (minimum exemption $5,000), not to exceed 20 percent. TEX. TAX CODE ANN (2005). UTTAH The state rate of tax cannot exceed per $1 of taxable value of taxable property in the state. UTAH CODE ANN ASSESSMENT RATE: Fair market value. UTAH CODE ANN /12/ :33 AM

24 N/A 100% Real property (except primary residential property). UTAH CODE ANN N/A 55% Primary residential property. UTAH CODE ANN N/A 35% Primary residential real property belonging to qualified low-income seniors. UTAH CODE ANN N/A 100% Centrally assessed property (utilities, mines, airlines, railroads, etc.). UTAH CODE ANN percent (65 percent for low-income seniors) of market value of primary residence is exempt. UTAH CODE ANN , VEERMONTT A statewide education property tax is imposed on all nonresidential at a rate of $1.59 per $100 of equalized education property value and homestead property at a rate of $1.10 per $100 of equalized education property value. VT. STAT. ANN. tit. 32, 5402 ASSESSMENT RATE: Appraised value, which is the estimated fair market value. VT. STAT. ANN. tit. 32, 3481 Vermont does not employ a classified property system under which different classes of property are taxed at different percentages of their value. No homestead credit or exemption available. VIIRGIINIIA ASSESSMENT RATE: Fair market value. VA. CODE ANN , (8) No specific classifications. Assessment ratios are set locally, with the concurrence of the governing body of each taxing entity. VA. CODE ANN (B) 65 and over Local option to exempt up to 100 percent assessed value, provided net worth is not more than $340,000. VA. CODE ANN , $72,000 WASSHIINGTTON 9/12/ :33 AM

25 The state levies a school property tax at the rate of $3.60 per $1000 of market value. WASH. REV. CODE ASSESSMENT RATE: True and fair value. WASH. REV. CODE All property is valued and assessed at 100 percent of its true and full value. 61 and over Exemptions vary with income. A full exemption may be granted if combined disposable income is less than $35,000. WASH. REV. CODE Varies WEESSTT VIIRGIINIIA ASSESSMENT RATE: True and actual value. W.VA. CODE Classification Rate Levy Limit* Property Description Class I 60% $0.50 Tangible personal property employed exclusively in agriculture, products of agriculture while owned by the producer. W. VA. CODE Class II 60% $1.00 Residences and farms. W. VA. CODE Class III 60% $1.50 Real and personal property not in Classes I or II and located outside of municipalities. W. VA. CODE Class IV 60% $2.00 Real and personal property not in Classes I or II and located within municipalities. W. VA. CODE (2206). * Per $100 of assessed value. 65 and over Exemption of up to $20,000 ($33,300 equivalent) assessed value. W. VA. CODE 11-6B-3 WIISSCCONSSIIN A state tax of 0.2 mills, imposed annually on all taxable property, is used to fund state forestry programs. WIS. STAT ASSESSMENT RATE: Full cash value. WIS. STAT , 70.32(1) 9/12/ :33 AM

26 Wisconsin does not tax different properties at different percentages of their property. The lottery and gaming credit against property tax is allocated to every property used as the owner s principal dwelling in an amount determined by multiplying the school tax rate by the credit base or fair market value of the property, whichever is less. WIS. STAT The school levy tax credit against property tax is distributed by the state to municipalities based on their share of statewide levies for school purposes during the three preceding years. Within municipalities, credits are allocated according to each property s percentage share of the municipality s total taxable value. WIS. STAT , NOTE: All taxable property (including a primary residence) is eligible for the school levy tax credit. WYYOMIING A state tax of 12 mills is levied annually for school support. WYO. STAT. ANN (a)(iv) ASSESSMENT RATE: Taxable value, which is the fair market value. WYO. STAT. ANN (a)(i) Class I 100% Gross mineral and mine products. WYO. STAT. ANN Class II 11.5% Industrial property. WYO. STAT. ANN Class III 9.5% All other property. WYO. STAT. ANN Credit varies according to tax rate and assessed value. The credit is in effect only if the legislature appropriates fund to reimburse local taxing entities for the lost revenues. It has not been funded for several years. WYO. STAT. ANN /12/ :33 AM