Multiply the General Tax Rate by the Director's Ratio and you get the Effective Tax Rate:
General Tax Rate × Director's Ratio = Effective Tax Rate
It's a tax rate expressed per $100 of Market Value
instead of Assessed Value. Because it's normalized to actual
value, it's useful three ways:
- Estimate taxes on any home. Divide the asking price by 100 and multiply by the Effective Tax Rate for a rough annual estimate.
- Compare towns apples-to-apples. Because it's normalized to Market Value, it's the number to use when comparing tax burden across different towns.
- Estimate the tax impact of an addition or renovation. Multiply the Effective Tax Rate by the project's cost for a rough estimate of how much your taxes would rise.
