Mills Act Calculator City of Oakland Table 1 Mills Act Property Tax

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					                                                          Table 1
                                             Mills Act Property Tax Calculator


Item                                                          Factor                                            Amount


CURRENT TAXES
Assessed Value                                                                                                $800,000
Total Property Tax (1)                                      1.3057%                                            $10,446
Property Type (1=Residential, 2=Commercial)                 1       Residential


MILLS ACT TAXES
Annual Income
Monthly Rent                                                   $1.25 /sq.ft./ month
Leaseable Area                                                 4,000 square feet
Annual Rent                                                                                                    $60,000
(less) Annual Expenses (2)                                      25% of Annual Rent                            ($15,000)
    Net Annual Income                                                                                          $45,000

Capitalization Rate
Interest (3)                                                5.7500%
Risk Component (4)                                          4.0000%
Tax Rate (1)                                                1.3057%
   Total, Cap Rate (Land)                                  11.0557%
Amortization (5)                                            1.6667%
  Total, Cap Rate (Improvements)                           12.7224%

Assessed Value & Taxes
Weighted Average Capitalization Rate (6)                   12.3890%
Assessed Value (based on Mills Act)                                                                           $363,224
Total Property Tax                                          1.3057%                                             $4,743


CHANGE IN TAXES
Decrease due to Mills Act                                                                                       ($5,703)
  Change compared to Current Taxes                                                                                 -55%


  (1) Total property tax rate is greater than 1 percent due to tax overrides.
      Total rate may vary slightly year-to-year, and depends on specific location.
      Actual taxes will also depend on share of overrides which are per-parcel rather than a % of value.
  (2) Alameda County Assessor's Office assumes approximately 25 percent of income
      goes to property maintenance and other operating expenses.
  (3) 2005-2006 State Board of Equalization Mills Act interest rate. This rate is updated no later
      than October 1 of each year.
  (4) Risk component is 2 percent for commercial properties and 4 percent for residential
      properties.
  (5) Amortizes improvements over 60 years.
  (6) Assumes that land comprises 20 percent of value and improvements comprise 80
      percent of value. Value of land is not amortized.




Economic & Planning Systems, Inc.10/5/2011                                            D:\Docstoc\Working\pdf\6f3fb209-3daa-4670-bcf5-d560f525c7e4.xls
Table 2
City and Redevelopment Agency Impacts



                                                                              Amount                   Amount                 Increase/
Item                                           Factor                      w/out Mills Act            w/ Mills Act           (Decrease)


Valuation                                                                           $800,000               $363,224             -$436,776

Total Property Tax with Overrides             1.3057%                                 $10,446                 $4,743               -$5,703

Total Property Tax Excluding Overrides            1%                                   $8,000                 $3,632               -$4,368

Non-Redevelopment Area

  Property Tax to City                        27.28% of 1% tax                         $2,182                   $991               -$1,192

Redevelopment Area

  Property Tax Pass-Through                      20% of 1% tax                         $1,600                   $726                  -$874
  City Share of Pass-Through                  27.28% of pass-through                     $436                   $198                  -$238

  Property Tax to Redevelopment Agency           80% of 1% tax                         $6,400                 $2,906               -$3,494




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