In Marshfield, the City Clerk received notices of the tax levies each year apportioned by the State, Wood County, Marathon County, the School District and the VTAE District. The local tax levy is added to the apportioned levies to develop a total tax levy. Adding the levies for the taxing authorities determines the gross tax dollar amount, and adding the rates determines the gross tax rate.
Likewise, the total tax levy divided by the total assessed value equals the gross tax rate. State aids to be received reduce the gross tax amount, and reduce the gross rate, determining the net tax to be collected and the net tax rate. The net tax rate is referred to as the mill rate (or tax rate per $1,000 of assessed value).
Because Marshfield is located in two counties, two tax rates are calculated each year. The levies are divided by that part of the City's assessed value in each County to determine a rate in mills.
The individual assessed values in the tax roll are multiplied by the mill rate to calculate each property owner’s tax liability. The tax liability for each property is based on the assessed value as established by the local assessor, in relation to the total assessed value of the municipality.
When the equalized ratio is over 100% - the estimated fair market value printed on the tax bill is lower than the assessed value. It's common for taxpayers to question why the tax bills are not generated using the equalized values when that occurs.
If equalized values were used, the tax rate would be calculated by dividing the total tax levy by the total equalized value. The chart below show the tax calculations for the same property calculated both ways. Although the rate would change, the tax liability remains the same.
CALCULATING TAX LIABILITY - ASSESSED OR EQUALIZED VALUE
Final Assessed Value for Municipality
Equalized Value of Municipality
Equalized Ratio - Level of Assessment
Home's Assessed Value
Home's Equalized Value
Total Net Tax To Collect From All Jurisdictions
Tax Rate Based on Total Assessed Value ($18,000,000 / $713,548,200)
Taxes On Assessed Value of $100,000 (.025226046 X $100,000)
Tax Rate Based on Equalized Value ($18,000,000 / $708,506,724)
Taxes On Equalized Value of $99,295 (.025405151 X $99,295)
**NOTE: Calculation example only and not actual local figures.