Question

Determining of property tax rate

Answer 1

Answer:

a) We need to collect $800,000, but as uncollectible property taxes ar 3% of the levy we need to collect

800,000/(97%)=$824,742.27

Which should be collected from the value of all properties less that with exemptions. That is

$50$

$- 10$    Government

$- 2.5$  Homestead

$- 1$      Veterans

$- 0.5$  Old age, etc.

___________

$36$ million

The tax rate would be $\frac{824,742.27}{36,000,000} = 0.02291$ that is $22.91 per $1,000  of assessed valuations.

b) $100,000*0.02291= $2,291