How is the assessed value of my property computed? How is the tax calculated?
A. The assessed value is determined by a set percentage (based on the year of purchase) of the original capitalized cost of each item. These percentages are on the front of the return titled Part 1: Owned Property. For example, personal property placed in service in the previous calendar year is assessed at 80% of its original capitalized cost. For the calendar year before that, at 70% of its original capitalized cost. The percentage decreased annually by 10% until it reaches 20%, then remains at that level until it is no longer in service. The tax is then computed by multiplying the total assessed value by the tax rate. The current tax rate is $5.00 per $100 of assessed value.
