(1) Appraised Value: Similar to residential properties, the market value is determined by an appraiser.
(2) Assessed Value: Typically, commercial and industrial properties are assessed at 90% of their appraised value.
(3) Rollback: The assessed value is adjusted by the rollback percentage. For commercial and industrial properties, the rollback percentage of 83.6147%.
Calculation: The PPEL levy is applied to the assessed value after the rollback. Commercial property has a two step calculation. The first $150,000 of assessed valuation is rolledback at a rate of 47.4316%. All assessed value beyond the $150,000 has a rollback applied at 90%. For a commercial property with an appraised value of $1,000,000, the taxable value after rollback would be $866,147.40 ($150,000 * .474316 )+ ($850,000 * 0.90).
Tax Amount: The PPEL levy would add $560.22 to the annual property tax bill ($866,147.40 / 1,000 * $0.67) which would then be offset by the income surtax to approximately $443.16/year.
Link to Beacon-Schneider