Mill levy and valuation calculations can seem confusing, especially if you are asked to make a quick calculation by a taxpayer or a member of the media. The Kansas Division of Accounts and Reports has created an interactive spreadsheet to assist with these calculations. To access the website from the Municipal Services section at http://www.da.ks.gov/ar/muniserv/ click on “How to Compute the Value of One Mill – Interactive” link in the “Other” section.

The four calculations available are:

• How to compute the value of one mill. By entering the assessed valuation for your entity, the formula will calculate the value of one mill.

• How to determine a mill rate increase. This example calculates how much the mill rate will increase if taxes are increased by a specific amount. In the example given on the website, if you raise your general fund $50,000, the increase to the mill rate would be .160 based on the $312,000,000 assessed valuation entered in the example. By entering the assessed valuation for your entity and the proposed property tax increase for your entity the formula calculates the mill rate increase

• How to compute the increase of a property tax increase on a home. In this example you enter your entity’s assessed valuation and the proposed increase in property tax as in the prior example. In addition, you enter the estimated value of a home (for example $100,000). The formula calculates the annual increase for that property based on the information provided. In this case, the effect of a $50,000 increase in the general fund would lead to a $1.84 annual increase in property taxes for a home with $100,000 valuation.

• Finally, the spreadsheet can calculate the impact of total mills on an individual home. In this calculation you can input the value of the home and the total mill levy and the formula calculates the annual property taxes. In this example the total mill rate for the entity is 33.300 and the home’s value is $190,000 for a total property tax of $727.61.

The Division of Accounts and Reports suggests personnel who are required to make this computation save the Excel spreadsheet to their local computer. In addition, this worksheet can be added as a tab to your budget file for use during your budget process. It is anticipated the spreadsheet will be included as a tab in the 2012 budget files.

If you have additional questions relating to budget calculations please contact Lewis, Hooper & Dick, LLC at (620) 275-9267.

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