Office of Management and Budget average mill rate and the property tax costs formulas
Here is how the Office of Management and Budget comes up with the average mill rate formula:
The
average mill rate is calculated based on the total taxes to be collected, divided by the areawide assessed valuation, then multiplied by 1,000.
To put that in a mathematical equation:
Total taxes to be Collected
÷ Areawide Area Assessed Value
x 1,000
= Average Mill Rate
Using the formula provided by the Office of Management and Budget here is the average mill rate calculations based off of the
Assembly’s 2021 1st Quarter Revised Budget, the
Mayor’s Proposed 2022 1st Quarter Revised Budget, and the
Anchorage Assembly’s Amended and Passed 2022 1st Quarter Revised Budget after Mayor vetoes:
Using the formula provided by OMB, here are the calculations for the average mill rate from the Assembly's 2021 1st Quarter Revised Budget
612,657,619 (total taxes to be collected) ÷ 34,626,424,977 (Areawide Assessed Value) x 1,000 = 17.69 (average mill rate)
Using the formula provided by OMB, here are the calculations for the average mill rate from the Mayor's Proposed 2022 1st Quarter Revised Budget
592,427,888 (total taxes to be collected) ÷ 36,237,162,319 (Areawide Assessed Value) x 1,000 = 16.35 (average mill rate)
Using the formula provided by OMB, here are the calculations for the average mill rate from the Anchorage Assembly's Amended and Passed 2022 1st Quarter Revised Budget
596,983,547 (total taxes to be collected) ÷ 36,237,162,319 x (Areawide Assessed Value) 1,000 = 16.48 (average mill rate)
Here is how the Office of Management and Budget comes up with the property tax cost formula:
The
property tax cost based on average mill rate is then calculated by multiplying the average mill rate by the taxable property assessed value, then divided by 1,000.
To put that in a mathematical equation:
Average Mill Rate x Taxable Property Assessed Value ÷ 1,000 = Property Tax Cost (based on Average Mill Rate)
Using the formula provided by the Office of Management and Budget here is the property tax cost calculations based off of the
Assembly's 2021 1st Quarter Revised Budget, the
Mayor's Proposed 2022 1st Quarter Revised Budget, and the
Anchorage Assembly's Amended and Passed 2022 1st Quarter Revised Budget after Mayor vetoes:
Using the formula provided by OMB, here are the calculations for the property tax rate from the Assembly's 2021 1st Quarter Revised Budget
17.69 (average mill rate) x 420,000 (taxable property assessed value of an average home) ÷ 1,000 = $7,430 (Property Tax Cost)
Using the formula provided by OMB, here are the calculations for the property tax rate from the Mayor's Proposed 2022 1st Quarter Revised Budget
16.35 (average mill rate) x 420,000 (taxable property assessed value of an average home) ÷ 1,000 = $6,867 (Property Tax Cost)
Using the formula provided by OMB, here are the calculations for the property tax rate from the Anchorage Assembly's Amended and Passed 2022 1st Quarter Revised Budget
16.48 (average mill rate) x 420,000 (taxable property assessed value of an average home) ÷ 1,000 = $6922 (Property Tax Cost)
If you take the
Assembly's 2021 1st Quarter Revised Budget Property Tax Cost of $7,430 (taken from (1) and
subtract it from the
Mayor's Proposed 2022 1st Quarter Revised Budget Property Tax Cost of $6,867, you will get the difference between the Assembly and the Mayor.
$7430 (Assembly's 2021 1st Quarter Revised Budget Property Tax Cost)
-
$6867 (Mayor's Proposed 2022 1st Quarter Revised Budget Property Tax Cost)
_________________________________________
$563
To determine the difference with your own property just replace the $420,000 with the value of your property in the formula.
Actual taxable property assessed values may change year over year due to exemptions, property condition/improvements, inflation, etc.
Actual property tax cost is based on actual taxable assessed property values and actual mill rate for the tax district that the property is in.
Tax district mill rates are the sum of the service area mill rates included in the tax district. Tax districts may include multiple service areas, including: areawide, fire, police, roads, and parks.
All of these figures and calculations are included in the OMB 2021 and 2022 Budget Books and online at
Operating Budget General Government Operating Budget (muni.org).