What is the first step in the process of calculating a tax bill?

The first step in the process of calculating a tax bill involves determining the assessed value of the property. The assessed value refers to the value assigned to a property by the tax assessor, reflecting its worth for taxation purposes. This value serves as the foundational figure from which property taxes will be calculated.

Once the assessed value is established, it can then be used alongside the tax rate and any applicable exemptions to arrive at the final tax bill. This step is crucial because without a clear understanding of a property's assessed value, the subsequent calculations, such as applying the tax rate or preparing a budget for the tax district, would not be possible.

In the broader context, while calculating the assessed value is the initial task, arriving at an accurate tax bill also depends on other elements such as establishing a fair tax rate and ensuring the tax district's budget aligns with its financial needs.