Definition
A Tax Roll is a formal list of all properties within a county or other property taxing jurisdiction that are subject to taxation. This list includes pertinent details such as property addresses and assessed values. At a certain date, often annually, a county tax assessor certifies the tax roll, rendering it official for tax collection purposes.
Example: A tax roll was prepared by the county tax assessor’s office, showing $100 million worth of assessed value in the jurisdiction. The county commissioners needed to collect $1 million of taxes to fund local government operations for the year. They applied a 10 mill tax rate to the tax roll.
Examples
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Residential Property Tax Roll: A small town has a tax roll that includes 2,000 residential properties. Each home’s assessed value is recorded, and the total taxable value amounts to $200 million. The town applies a tax rate of 1.5% to fund public services like schools and road maintenance.
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Commercial Property Tax Roll: In a major city, the tax roll contains information about thousands of commercial properties, with a total assessed value of $5 billion. These values help the city government set tax rates needed to support infrastructure projects and public safety.
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Agricultural Property Tax Roll: A county with significant farming activity maintains a tax roll listing various agricultural lands. Each parcel of land is assessed based on its use and productivity, leading to a total assessed value specific to agriculture.
Frequently Asked Questions (FAQs)
What is the purpose of a tax roll?
- Answer: The primary purpose of a tax roll is to list all properties that are subject to taxation within a jurisdiction, providing assessed values used to calculate property tax liabilities.
Who prepares the tax roll?
- Answer: The tax roll is typically prepared by the county or municipal tax assessor’s office.
How often is the tax roll updated?
- Answer: The tax roll is usually updated annually, although the specifics can vary depending on local regulations and requirements.
What information is included in the tax roll?
- Answer: A tax roll generally includes property addresses, owner names, parcel numbers, and assessed property values.
How is the tax rate determined?
- Answer: Tax rates are determined by local government bodies based on budgetary needs to provide public services. They set tax rates that, when applied to the assessed values on the tax roll, generate the necessary revenue.
Related Terms
Assessed Value:
- Definition: The assessed value is the dollar value assigned to a property by a tax assessor for the purpose of taxation.
Mill Rate:
- Definition: The mill rate is the amount of tax payable per dollar of the assessed value of a property. One mill represents $1 of tax per $1,000 of assessed property value.
Tax Assessor:
- Definition: A tax assessor is an official who determines the value of properties within a taxing jurisdiction for tax purposes.
Property Taxes:
- Definition: Property taxes are taxes paid by property owners on the assessed value of their real estate. The revenue is typically used to fund local services like schools, police, and public infrastructure.
Tax Levy:
- Definition: A tax levy is the amount of money a government needs to collect, which is then apportioned among district residents and property owners based on the assessed values listed on the tax roll.
Online Resources
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IRS Property Tax Guidelines: https://www.irs.gov
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Local Tax Assessor’s Office Websites:
- Example: Los Angeles County Office of the Assessor
- Example: Cook County Assessor’s Office
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National Association of Realtors (NAR): https://www.nar.realtor/
References
- “Principles of Real Estate Practice” by Stephen Mettling and David Cusic.
- “The Appraisal of Real Estate” by Marcy Elizabeth Gerhards and the Appraisal Institute.
Suggested Books for Further Studies
- “Principles of Real Estate Practice” by Stephen Mettling and David Cusic.
- “Real Estate Taxation: A Practitioner’s Guide” by David F. Windish.
- “The Appraisal of Real Estate” by Marcy Elizabeth Gerhards.
