2004
Summer Tax Bill
2003 Winter Tax Bill
City
Operating
13.9473
Wexford County
8.1040
P
& F Retirement
1.8000
School Debt
1.8750
School
Debt
1.9500
Intermediate School Dist. 6.0003
School
Operating
8.7753
CWTA
0.3910
School
State Ed. Tax 6.0000
Council on Aging
0.9872
Library
0.6838
School Operating
8.7752
Total
32.4726
Total
26.8165
Total
Millage = 59.2891
*Note
that one mill generates $1 of taxes per $1,000 of property
tax value.
Example
Property Values: $10
Million - Machinery (Personal Property) true cash value.
$5 Million - Building and Land (Real Property) true cash
value.
In
Michigan, property taxes are paid based on teh taxable
value of such property. Taxable value of real property
is calculated at one-half of true cash value. Furthermore,
Proposal A of 1994 limits future increases in real property
taxable value to 5% or the rate of inflation, whichever
is less. Therefore, in year one, based on a $5 million
true cash value for real property, the taxable value of
this property would be $2.5 million. Taxes due would
be calculated by multiplying $2.5 million by 59.2891 mills
(0.0592891), which equals $148,223. Please
note that this tax bill would very likely be reduced by
50% due to tax incentives available through the City of
Cadillac and the State of Michigan.
Personal
property taxes are calculated on the basis of depreciating
true cash value, which for machinery, is initially calculated
at 89% of true cash value in year one (as of 2002).
However, as machinery ages it is subject to depreciation
and thus, its taxable value declines every year (i.e.,76%
in year two; 67% in year 3, 60% in year 4, etc.) after
installation until year 15, at which point it is valued
at 23% of true cash value and continues at that valuation
rate for the remaining life of the equipment. Therefore,
in year one, $10 million in machinery would have a taxable
value of $8.9 million. Taxes would be calculated
by multiplying the taxable value of $8.9 million by 59.2891
mills (0.0592891), which equals $527,673. Please
note that this tax bill would very likely be reduced by
50%, due to tax incentives available through the City
of Cadillac and State of Michigan.
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