Being a newly elected supervisor, I am learning many things I failed to understand as a citizen. Therefore, this new column is to help you better understand the workings of county government.

I have already had a few questions about taxes, how they are calculated, and how we asses them. It is a big topic that can become complex and create a lengthy discussion, but here are the basics.

There are five classifications of taxes, each with different tax rates.

Class 1 properties are residential properties; these are taxed at 10 percent of true value.

Class 2 properties are rental or commercial properties which are taxed at 15 percent of true value.

Class 3 properties are business property which includes items such as furniture and equipment; which are taxed at 15 percent of true value.

Class 4 is public utilities and Class 5 is motor vehicles, both are taxed at 30 percent of true value.

To better understand taxes, you need to understand the difference between true value, market value, assessed value and millage. True value is not the same as market value. For instance, true value of agricultural property is often much less than the market value of the property, the same can apply with houses.

The assessed value is used to determine everything from millage rates and tax bills, to county official salaries. Assessed value is calculated by taking the true value divided by the class rate. A mill is equal to a thousandth of one dollar or $.001.

Class 1 properties are the only properties eligible for homestead exemptions. If you are under 65 years of age, you can receive a maximum $300 deduction on your tax bill. If you are over 65 years of age or totally disabled you can receive a $7,500 total deduction on your assessed value, which significantly lowers your tax bill.

For tax purposes, ownership is based on Jan. 1 ownership. So if you sold property in March of 2011 you will receive the tax assessment for that property in 2012.

So what is the role of the supervisor in reference to ad valorem taxes? First, we are responsible for properly staffing the office of the tax assessor and approving resources to ensure the tax assessors are properly trained.

Secondly, we receive the assessment rolls by the first Monday in July.

Third, we ensure all assessments are equitable or fair.

Fourth, we open the rolls for public viewing and inspection.

And finally, in August, we hear appeals and make changes in accordance with the law. The supervisors have no role in the actual assessment of taxes; this is done by the tax assessor’s office. Each year the supervisors must levy ad valorem taxes on or before Sept. 15 to meet the demands of Adams County.

Taxation should always be a major concern to the taxpayer. So having a good understanding of how taxes are derived will hopefully help you better understand how this system of government works.

 

David Carter is the county supervisor representing District 2 of Adams County.