Determining of property tax rate The county legislature approved the budget for
ID: 2337268 • Letter: D
Question
Determining of property tax rate
The county legislature approved the budget for 2019. Revenues from property taxes are budgeted at $800,000. According to the county assessor, the assessed valuation of all of the property in the county is $50 million. Of this amount, property worth $10 million belongs to the federal government or to religious organizations and, therefore, is not subject to property taxes. In addition, certificates for the following exemptions have been filed:
In the past, uncollectible property taxes averaged about 3 percent of the levy. This rate is not expected to change in the foreseeable future. Using all of this information, determine
a. the property tax rate per $1,000 of assessed valuations that must be used to collect the desired revenues from property taxes.
Round answer to two decimal places.
$Answer
b. the levy on a piece of property that was assessed for $100,000 (after exemptions).
Use rounded answer from above. Round final answer to the nearest whole number.
Homestead $2,500,000 Veterans 1,000,000 Old age, blindness, etc. 500,000Explanation / Answer
a) The Property tax rate for the desired rate of taxes is calculated as below:
Particulars Amount
Amount to be collected $800000
Estimated uncollectible Prop Taxes 3%
Required tax levy $800000/.97 $824742.27
Total assessed value $50000000
Less Property not taxable $10000000
$40000000
Less exemptions $2500000
Homestead $2500000
Veterans $1000000
Old age ,blindness $500000
Net assessed value $36000000
Tax Rate =required tax levy /net assessed value of property is 2.29%
ie $22.91 per $1000 of assessed valuation.
b.The property that is assessed for $100000 would be levied at the tax rate of 2.29%
ie $2291
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