When a district certifies a dollar amount tax levy, such as a local option tax or bond tax, the assessor must calculate a tax rate. To compute the tax rate, the tax levy amount is divided by the taxable assessed value of the district. This tax rate is placed on the individual property tax accounts in the city. All the taxable property within the city will pay the same rate for the local option tax. The amount of tax paid, of course, will vary depending on the assessed value of each property.
Individual properties pay taxes to the districts that provide services to that property.
For example, a property in Green City would pay taxes to the city, the county, a school district, and maybe a library district. Property outside the city would pay taxes to the county, a rural fire protection district, a school district, and maybe a park and recreation district. Some properties pay taxes in the form of assessments, usually to a special taxing district. An example would be a drainage district that assess on a per acre basis. These qualifying assessments are also placed on the tax roll.