Opinion ID: 1309027
Heading Depth: 1
Heading Rank: 5

Heading: operation and effect of assessment ratio

Text: Directly now presented to this court is the inquiry whether variable assessment valuations as fractions of current market value are permitted within Wyoming constitutional criteria. This court will then analyze, in distinguishing taxation from assessment, and in differentiating legislative function from administrative responsibility, whether establishment of any assessment ratio which effectively determines the amount of tax to be paid, after fair market value's current value is established, is properly a function of the state board as an administrative agency or is a nondelegable responsibility of the legislature. [13] See discussion of a fair market value as a just valuation starting point in taxation in Walter v. Schuler, Fla., 176 So.2d 81 (1965). Where some classification-ratio system is used, after market value is determined, assessment ratios are sequentially applied. By example, if taxing a property with a fair market value of $1 million, the 11.5 percentage ratio would establish an assessed taxation value of $115,000 to which the mill levy is applied, as in general in Wyoming would approximate a range of about 80 mills, or 8%, although variably dependent upon the taxation entity. Consequently, in this example, with an 8% mill levy, the property with a fair market value of $1 million would be taxed $9,200, or .92%. Conversely, if the property with a similar market value fell in the 8% class, the tax assessment would total $6,400 or .64% of value. The differential between high to low is.35%, or a difference in tax of $2,800 for a percentage variance from the low to the high categories of 43.75%. The differential if the high ratios were 12% would, of course, be 50%. [14]