One property assessed at $200,000 at a two percent tax rate. The amount is $400,000, and if we apply a one percent tax rate, we obtain $4,000, while the city, county and state collect the same amount. However, the owner has more equity, according to the property's actual value. Owners can get a second mortgage, reinvest, enjoy the money, experience better finance management, more maintenance of the property etc., which increases the value and reduces the tax rates.