(This is a simplified example for demonstration purposes.)
| For example, let's use a $100,000 home in today's real estate market: | |
| 2000 market value of the property. | $100,000 |
| 5-year levy renewal rate (effective rate) | 0.4978 mills |
| Gross taxes from this property | $17.42 annual taxes |
| Net taxes as a primary resident (2.5% reduction) | $15.24 annual taxes |
| The same house in 1980 was: | |
| 2000 market value of the property | $49,780 |
| 5-year levy renewal rate (effective rate) | 1.00 mills |
| Gross taxes from this property | $17.42 annual taxes |
| Net taxes as a primary resident (2.5% reduction) | $15.24 annual taxes |
The correlation between the millage and the market value will continue through the term of the levy (5 years). Because the levy is being renewed, even though the market value in the district increases during the five-year term, the millage will be lowered, so the district will not receive more tax revenue than in the first year the levy was enacted.