How to Calculate Your Taxes
 The property tax process starts first with the Assessor's appraised value of the property. The next step is to calculate the assessment and in order to do so, the class of the property must be determined. The State Constitution and the General Assembly have declared that Real estate is a class of property and that the type of real estate (commercial, residential or farm) is a subclass. The subclass of commercial real estate is assessed at forty (40%) per cent of the Assessor's appraisal. Residential and farm property are assessed at twenty five (25%) per cent. Tangible personal property such as furniture, fixtures, and equipment is a class of property and is assessed at thirty (30%) per cent of the Assessor's appraised value.
As an example, a commercial parcel of real estate appraised by the Assessor at $300,000 would be assessed at forty (40%) per cent of the $300,000 appraisal calculated as follows:
Assessor's Appraised Value $300,000
Times Assessment Ratio (percentage) 40%
Assessment $120,000
The resulting assessment is then multiplied times the tax rate as determined by the legislative body of the government for the County and/or city where the property is located. If the property in this example were located within the Urban Services District (USD), the property would be subject to the total tax rate for the General Services District (GSD) and the Urban Services District (USD). The total tax rate for 2008 is $4.69 per $100 of assessment. The tax calculation is shown below:
Assessment $ 120,000
Times Tax Rate ($4.69 per $100) $ .0469
Taxes $ 5,628
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