State law requires municipalities and counties to "roll back" their millage rate after reassessment of property values to ensure local governments receive the same amount of revenue from property taxes after reassessment as they did before.
In 2011, the legislature amended the rollback millage calculation to address local government concerns and take into account uncollected taxes and tax assessment appeals.
The legislature also changed the rollback calculation to adjust the total reassessed property values to exclude increases in value in the current year resulting from a sale or transfer of property.
The 2011 formula guarantees the rollback property tax millage rate will raise the same amount of property tax revenue in the new year as it did in the prior year.
Total city property tax revenue collected in the year prior to reassessment |
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Total city property value after reassessment minus total increase in property values due to sales, renovations and construction in the year of reassessment |
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