Only in Berlin and Franklin does commercial property account for a smaller portion of the tax base. The imbalance between residential and commercial property has a direct effect on the property tax rate, which is illustrated by a simple hypothetical example Mayor Ed Engler offered to the City Council. In one municipality, "A," the value of commercial property amounts to $78,947,358, or 5 percent of the total tax base of $1,578,947. By contrast, in municipality "B" the value of commercial property amounts to $807,692,308, or 35 percent of the total tax base of $2,307,692,308. Since "B" has more property than "A," it has greater expenses and raises $40,000,000 in taxes, but with a larger tax base, its tax rate is $17.33.

Source: Daily Sun February 17, 2017 07:41 UTC