How do you properly calculate anticipated property taxes

[Mark Dowsett]

Hi everyone,

I am in the process of purchasing an apartment complex and I am wanting to confirm how to calculated anticipated property taxes. I obtain my GP from being the deal finder, but I wanted to make sure the financial GP was calculating anticipated property taxes correctly. He is under the impression that you take the (property value/1000) and then multiply that by the millage rate for the county. 

Current purchase price is $1,700,000, millage is 20.5552. So he is projecting $34,943.84 in taxes Is this correct or is he missing something?

The broker has already provided this calculation for us, but we obviously want to verify. They have indicated that we should not see a reassessment more than 65%-75%. 

2018 assessed value $723,000

18 taxes due $13,878.79

18 Non-advalorem $324.00

18 taxes paid $13,323.64

18 millage 18.748

projected reassessment 70%

projected sale adjusted taxes $21,741.72

increase from current taxes $8,418.08

Obviously our $34k is off from the brokers projected $21k. I'm sure our guy is missing something, but wanted to run this by the group. This is my first deal and like I said Im on the deal finder side of things so please be kind that Im unsure on this part. Thank you all in advance!

sincerely,

Mark