Assessment Examples
In the event the referendum passes in November, the Holley-Navarre Fire District intends to set the proposed ad valorem millage rate between 1.5-1.7. You will notice in the ballot language that a statutory cap of 3.75 is mentioned. That is only there as legal language to specify that there is a statutory cap. The Holley-Navarre Fire District and BOFC have no intent to pursue such a high millage rate. Based off district needs, inflation and operational costs, the district believes a millage rate of 1.5-1.7 will be adequate to provide our community the services they need. Below are a couple of comparisons to demonstrate the difference between our current taxing system and the proposed, in order to give our community the best idea of what the total cost to the taxpayer might be.
Remember: our current non-ad valorem assessment is a flat rate, based off of gross square footage (as found on the property appraiser’s website). By changing to ad valorem, the fire assessment is calculated by a millage rate. The formula utilized for an ad valorem tax is the millage rate (1.5, for example) multiplied by a property’s taxable value (which may also be found on the county’s property appraiser website). This is different than a ‘zestimate’ or estimated property value. Below are a couple of pictures of where information for your property may be found on the property appraiser’s website (https://www.srcpa.gov) :
According to the latest tax role, there are roughly 19,800 parcels in the fire district, 16,673 (83%) of which have a taxable value of $250,000 or less. Let's look at an example residential home to see how the assessment change would affect it.
Example residential home
- 2,300 total square feet
- $250,000 taxable value
CURRENT Non-ad valorem assessment for this residential home ($0.0573 per total sq ft):
Current fire assessment= $131.79
Another way to look at it, especially for those that escrow their property taxes and pay for it as part of their total mortgage payment:
$131.79 divided by 12 months = $10.98 per month
Now, let's look at a second example:
- 3,000 total square foot home ( $0.0573 per total sq ft)
- Same $250,000 taxable value
Current fire assessment = $171.90
Or, if you calculate it out to the monthly cost, $171.90 divide by 12 = $14.32
PROPOSED Ad valorem tax (between 1.5 and 1.7):
Let's look at the same example homes listed above. As you might remember, both properties had a taxable value of $250,000.
$250,000 taxable value home x 1.5 mils = $375 annually
OR, $375 divided by 12 = $31.25 per month
Let's see how this compares with the old assessment, and how this directly affects the individual taxpayer. As noted above, the owner of the 2300 sq ft house paid $131.79 annually (or $10.98/month).
Under the new tax, the owner would pay:
$31.25 minus $10.98 = an increase of $20.27 per month for less than 2,300 sq ft home
The owner of the hypothetical 3,000 sq. ft property paid $171.90 under our old assessment.
Under the new tax, the owner would pay:
$31.25 minus $14.32 = an increase of $16.93 per month for this 3,000 sq ft home
Now, as stated above, the district is looking at a range of 1.5 to 1.7. When the district receives its preliminary tax roll, and based off inflation and operational costs, the district will be able to determine the exact millage rate in order to provide the emergency services needed. So, here's the same math as used above, utilizing a 1.7 millage rate:
$250,000 taxable value home x 1.7 mils = $425
Monthly, that's $425 divided by 12 = $35.41 per month
Remember that 2300 and 3000 sq ft examples? Let's throw them back in:
$35.41 minus $10.98 = an increase of $24.00 per month for a less than 2,300 sq ft home
$35.41 minus $14.32 = an increase of $21.09 per month for this 3,000 sq ft home
This is still substantially lower than surrounding departments in our area. Comparatively, it is also roughly the same monthly cost as a television streaming service, or a fast food meal. We strive to keep our costs at conservative and reasonable levels, while never putting a price on our community's emergencies.
