Question

Given the following information, compute the property tax rate for the community in percentage terms. Total budget expenditures: $108 million, Total non-property tax income: $50 million, Total assessed value of all properties: $2 billion, Total exemptions: $550 million.
A. 2.5%
B. 4.0%
C. 10.0%
D. 12.0%

Answer 1

Answer:

B) 4.0%

Explanation:

to calculate the property tax rate we can use the following formula:

property tax rate = (total budget - non property tax income) / (total asses value of properties - total exemptions)

property tax rate = ($108 - $50) / ($2,000 - $550) = $58 / $1,550 = 0.037 ≈ 4%