How is the local tax rate established by the county taxing board?

The local tax rate established by the county taxing board is determined by dividing the total levy by the total assessed value of taxable property. This method reflects the total amount of revenue the county needs to collect through taxes, which is known as the levy. By calculating the rate this way, the taxing board ensures that the tax burden is fairly distributed among the property owners based on the value of their property.

This process involves determining how much money is needed for funding local services and obligations, followed by assessing the total valuation of properties that will be taxed. The result is a tax rate that, when applied to the assessed value of properties, yields the necessary levy. This approach ensures that the rate remains equitable, taking into account the growth in property values and changes in funding needs from year to year. It aligns with the principles of maintaining fair taxation based on property ownership and value.

Considering the other choices, averaging tax rates does not directly reflect the financial requirements of the county. Increasing the previous year’s rate by a fixed percentage does not take into account changes in property values or funding needs, potentially leading to inequities. Evaluating state funding levels may influence local budgets but is not a direct method for establishing tax rates.