Attachment 2 - Tables 2 - 7, Mills Act Property Tax Calculator ExamplesTable 2
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $450,000
Total Property Tax (1)1.2000%$5,400
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($149)
Change compared to Current Taxes -3%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019
Table 3
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $750,000
Total Property Tax (1)1.2000%$9,000
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($3,749)
Change compared to Current Taxes -42%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019
Table 4
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $1,000,000
Total Property Tax (1)1.2000%$12,000
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($6,749)
Change compared to Current Taxes -56%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019
Table 5
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $1,500,000
Total Property Tax (1)1.2000%$18,000
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($12,749)
Change compared to Current Taxes -71%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019
Table 6
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $2,500,000
Total Property Tax (1)1.2000%$30,000
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($24,749)
Change compared to Current Taxes -82%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019
Table 7
Mills Act Property Tax Calculator
Item Factor Amount
CURRENT TAXES
Assessed Value $3,000,000
Total Property Tax (1)1.2000%$36,000
Property Type (1=Residential, 2=Commercial)1 Residential
MILLS ACT TAXES
Annual Income
Monthly Rent $2.00 /sq.ft./ month
Leaseable Area 2,500 square feet
Annual Rent $60,000
(less) Annual Expenses (2)25%of Annual Rent ($15,000)
Net Annual Income $45,000
Capitalization Rate
Interest (3)3.7500%
Risk Component (4)4.0000%
Tax Rate (1)1.2000%
Total, Cap Rate (Land)8.9500%
Amortization (5)1.6667%
Total, Cap Rate (Improvements)10.6167%
Assessed Value & Taxes
Weighted Average Capitalization Rate (6)10.2833%
Assessed Value (based on Mills Act)$437,601
Total Property Tax 1.2000%$5,251
CHANGE IN TAXES
Decrease due to Mills Act ($30,749)
Change compared to Current Taxes -85%
(1)Total property tax rate maybe greater than 1 percent due to tax overrides.
Total rate may vary slightly year-to-year, and depends on specific location.
Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
(2)Assumes approximately 25 percent of income goes to property maintenance and other operating exp
(3)2016-2017 State Board of Equalization Mills Act interest rate.
(4)Risk component is 2 percent for commercial properties and 4 percent for residential properties.
(5)Amortizes improvements over 60 years.
(6)Assumes that land comprises 20 percent of value and improvements comprise 80
percent of value. Value of land is not amortized.
Economic & Planning Systems, Inc.9/10/2019