KPATKOP
Mills Act Tax Assessment Worksheet
Annual Property Income
An estimate of monthly rental income is required, even if the Monthly Rental Income property is owner occupied. For single-family residences, a realtor may be able to assist you in determining the potential rental income from your property. muth
Annual Rental Income Multiple monthly rental income by 12. $33,600.
Annual Operating Expenses
Insurance
Ublities Electricity, Water, Gas. ·18.95.
Maintenance General Repairs, Cleaning, Painting, Landscaping. 8 Geco.
Total Expenses Add total expenses. Tolal expenses typically equal 49,743. approximately 25% of annual rental income.
Annual Net Income
Net Total Annual rental income minus total expenses. $33.940.
Capitalization Rate
Interest Rate Component Fixed interest rate established by the Board of Equalization for 4.25% most recent year. (4.0%]
Historic Property Tax Risk 4.0% for single-family residences Component 2.0% for all other properties 4.0%
Property Tax Component Fixed Component [1.0%] 1.080%
Amortization Component Based on life of improvements. [Typically 0.67%] 75% Capitalization Rate Add individual components above. 10.090y2 Assessed Value
Historic Property Value Net total divided by capitalization rate. *241,375 Current Assessed Value From current property fax bill. $537,333 Estimated Tax Reduction
Current Tax General levy tax portion only. Does not include sewer ollar be assessments, bond issues, or other voter indebtedness.
Estimated Tax under Mills Act 1.0% of Historical Property Value. Provided as an estimate 0113y 413.25 potential tax savings.
SINGLE FAMILY RESIDENCE
Square Feet
Bedrooms
Bathrooms
Year Built 1920
Estimated Remaining Life 40
Base Year Value
Date of Purchase 10/06/2015
Fair Market Value (Base Year) $501,000
Assessment Allocation
Land @ 70% $350,700
Improvement @ 30% $150,300
Factored Base Year Value
2016 + 2% CPI $511,020
2017 + 2% CPI $521,240
2018 + 2% CPI $531,665
2019 + 2% CPI $542,298
2020 + 2% CPI $553,144
2021 + 2% CPI $564,207
2022 + 2% CPI $575,491
2023 + 2% CPI $587,000
Fair Market Value
As of Lien Date 01/01/2023 $750,000
Potential Property Revenue
Potential Gross Income (rent @ $2800/mo x12) $33,600
Less Vacancy and Collection Loss @ 5% $1,680
Effective Gross Income $31,920
Less Annual Expenses @ 25% $7,980
Net Operating Income $23,940
Capitalization Rate for Owner Occupied
1) Interest Component (State Reported Rate) 4.2500%
2) Risk Component (Based on Owner Occupancy)
4.0000%
3) Property Tax Component (From Tax Rate Area
1.0804%
4) Amortization Component 30% x (1/40)
0.7500%
10.0804%
Mills Act Property Restricted Valuation
Owner Occupied NOI @ $23,940 / CAP Rate @ 10.0804% = $241,325 FBYV
$587,000
Fair Market Value
$750,000
Lien Date 01/01/2023 Enrolled Value
$241,325