What is the difference between a property tax levy and a tax rate?

Property taxes in Virginia are composed of two distinct parts: a property tax levy and a property tax rate. A property tax levy is the total amount of money that must be collected to pay for the local government’s operating expenses. Local governments determine their levies by analyzing their anticipated expenses for the upcoming fiscal year. The property tax rate, on the other hand, is the rate applied to a property’s value that determines the amount of the owner’s tax payment. The rate is determined by dividing the total tax levy for the region by the total amount of taxable property in the region. This rate of taxation can vary among counties and municipalities in Virginia. In summary, a property tax levy is the total amount of money that must be collected, while a property tax rate is the rate of taxation applied to a property’s value to determine the amount of the owner’s tax payment. Property tax levies and rates can vary from region to region in Virginia.

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What is the difference between a property tax levy and a tax rate?

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