Does an increase in equalization factor usually result in an increase in an individual’s tax bill?

Yes.

Increases in costs to provide services and State mandated legislation to taxing districts are two reasons tax bills may increase as districts normally must increase their levy amount to cover their increased costs. Even if no equalization factor is applied, the recouping of increased costs to the taxing district will increase the taxes an individual pays.

Simplified example - if the assessment does not change but the taxing district requests an increase in dollars

Calculate Tax Rate

                                 2015/Pay 2016       2016 Factor      2016/Pay 2017
District
Equalized Assessed Value            74,000,000       None (1.000)       74,000,000

District Levy                           90,000                             100,000

Tax Rate = Levy/Value                .00121622 .00135135

When the Equalized Assessed Value stays the same but the Levy (money asked for by the district) goes up, the rate increase, and the individual taxpayer pays more even though his assessment does not change.

Individual Taxpayer

Equalized Assessed Value               50,000                               50,000
×                                    ×
Tax Rate             .00121622 .00135135

Tax Bill                               $60.81                               $67.57

Show All Answers

1. What is an equalization factor (multiplier)?
2. Why does state law require equalization factors?
3. Who does these studies?
4. What information is used for these studies?
5. What years sales will be used for 2016 assessments?
6. What factors influence equalization factors (multipliers)?
7. What happens if township equalization factors (multipliers) are not applied at the county level?
8. Does an equalization factor automatically increase or decrease taxes?
9. Does an increase in equalization factor usually result in an increase in an individual’s tax bill?
10. How do I know if an equalization factor has been applied to my property?
11. Does farm land receive a multiplier based on sales of farm property?
12. If I have additional questions?