The City Council and School Board approve annual budgets to pay for services in the coming year. The tax rate is calculated by dividing the amount needed to be raised (the budget, net of other revenues) by the town’s total assessed property value.
For example: $13,000,000 to be raised / $700,000,000 total value of all taxable properties in town = $.017 tax rate. Thus each dollar value of property would be assessed $.017; or, as more commonly expressed, property would be assessed at $17.00 per thousand. (These numbers are for the purpose of an example only).