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How Taxes are Calculated Establish mill rate factors so that there is no tax shift between residential and non-residential properties 1. Mill Rate Factors be applied to the local property classes as follows: a) Agricultural 0.9637 b) Residential 0.8120 c) Commercial and Industrial 1.5183 2. Minimum tax be applicable as follows: a) Residential land with improvements $ 650.00 b) Commercial land with improvements $1,000.00 c) Residential classed land only $ 325.00 d) Commercial classed land only $ 500.00 Each year, the Town and School Board set their own tax rates, also called mill rates. A mill equals 1/10th of one cent. All residential and commercial property in Gull Lake is assessed. Currently, the mill rate and mill rate factor are multiplied by the taxable assessment to determine taxes. The minimum tax is applicable only to the municipal portion of property taxes: Taxable Assessment x Mill Rate x Mill Rate Factor = Taxes 1000 For a home with a fair value assessment of $100,000, the taxable assessment would be $70,000, at the 2006 mill rate of 19.00 (town) and 21.6845 (public school) the total taxes would be: ($70,000 x 19.00 x 0.722 x 0.8120) + ($70,000 x 21.6845 x .8120) 1000 $1,079.96 + $1,232.55 = $2,312.51
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