Well fellow Langley residents, I received my property tax assessment yesterday and like many of us we are experiencing large increases. My property assessment went up by 20%. So I called the Township of Langley to find out what that will look like for July 4th, 2016 and they say until the Minister of Finance sets the Mil rate they do not know what the actual increase to your property taxes will be. This rate is set in May. If you pay monthly they always increase the monthly payment by 5% from the previous year. I will have to put away extra money so it is not a big surprise when we do get our notices. This could be quite a hardship for many as everything keeps going up and up. Below is how the taxes are calculated. I also went to the last council meeting and taxes again were a topic of conversation and yes the township will be increasing the taxes as well. Seems everything just keeps going up and up.
Mil Rate Calculation
Each year, council, during its budgetary process, approves the amount of revenue required to operate the municipality. From this amount they subtract the known revenues, such as grants, licences and permits. The remainder represents the amount of money to be raised by property taxes. The amount to be raised is divided by the total value of all the property in the municipality and multiplied by 1,000 to decide the tax rate also known as the “mil rate.” The calculation expressed as an equation is as follows:
| amount to be raised
total taxable assessment |
X 1,000 = Mil Rate |
The word “mil” is derived from the Latin word for one thousand (1,000). In tax terms, one mil is equal to 1/1000 of a dollar or one dollar ($1.00) in tax for every one thousand dollars ($1,000) of assessment.
A sample calculation:
A town needs $30,000 to balance its budget. The total taxable assessment for all properties is $5,000,000.
| $30,000 (amount to be raised)
$5,000,000 (total taxable assessment) |
X 1,000 = 6 = Mil Rate |
The mil rate must be applied uniformly throughout the community, although certain properties, such as churches and schools are exempt from real property tax. Council, itself, may exempt certain property owners from paying property tax. That is why the mil rate is calculated on the total taxable assessment.
Property Tax Calculation
The amount of municipal tax payable by a property owner is calculated by multiplying the mil rate by the assessed value of a property and dividing by 1000.
| Mil Rate x Assessed Value
1,000 |
= Property Tax Bill |
Using 6 as the Mil Rate, a taxpayer with a property valued at $55,000 would be sent a tax bill for $330.
| 6 x $55,000
1,000 |
= $330 |