 TITLE: How to Save Money on Property Taxes CONTENT: Understanding Property Taxes\n----------------------------\nThree factors determine your property tax bill: your home's assessed value, its taxable value, and the mill rate your town or city, school district and other authorities use to calculate your tax.\n*   The **assessed value** of your home tracks its market value but seldom equals it exactly. It is determined by an assessor employed or contracted by your municipality who evaluates your property based on its size and configuration, condition, location and relative value in comparison with neighboring properties. Counties, cities and towns typically perform valuations on properties in cycles ranging from every three years to every five years.\n*   The **taxable value** of your home is the percentage, or _assessment ratio_, of your home's assessed value that is subject to property tax. In many municipalities, assessed value and taxable value are the same—in other words, the assessment ratio is 100%—but some authorities tax a lower percentage of the assessed value.\n*   The **mill rate** is the number of dollars you are charged in tax per thousand dollars of your home's taxable value. It is expressed as a simple number such as 16 or 18.5 (not as a percentage). To calculate your tax, divide the mill rate by 1,000 and then multiply the result by your home's taxable value.\nAs an example, consider a home with an assessed value of $400,000 in a town with a mill rate of 17 that applies an 80% assessment ratio:\nMill rate = 17\/1000 = 0.017\nTaxable value = 80% x $400,000 = $320,000\nProperty tax = 0.017 x $320,000 = $5,440\nAn increase to any of these factors—assessed value, assessment ratio or mill rate—will hike your property taxes. END