Tax Rate Setting
Who Determines the Tax Rate
- The responsibility of the Assessor is to fairly and equitably value all of the property in Town.
- The Assessor does not set the tax rate.
- The tax rate is determined each year as a result of the amount of money the town and the residents decide to spend at Town Meeting.
- The residents are partly responsible for any increase or decrease in the total amount of spending and any increase or decrease in the tax rate by voting on financial policy.
- So in effect the residents of Lancaster that participate in the Town Meeting process play a role in setting the tax rate.
Formula to Determine the Tax Rate
Tax Levy - the revenue a community can raise through real and personal property taxes
÷
Divided by the Real and Personal Property Total Value of the Town for the Fiscal Year
=
Proposed Tax Rate
Additional Information