Question

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: Homestead$2,500,000 Veterans1,000,000 Old age, blindness, etc.500,000 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 1

Answer:

2.29%

i.e. $22.91 per $1000 of assessed valuation.

Explanation:

The computation of the property tax rate per $1,000 of assessed valuations is given below;

Amount to be collected  $800,000

Estimated uncollectible Prop Taxes  3%

Required tax levy ($800,000 ÷ .97)  $824742.27

Total assessed value $50,000,000

Less Property not taxable $10,000,000

Less exemptions -$2,500,000

Homestead    $2,500,000

Veterans  $1,000,000

Old age ,blindness $500,000

Net assessed value  $3,600,0000

Now  

Tax Rate is

= required tax levy ÷ net assessed value of property

= 2.29%

i.e. $22.91 per $1000 of assessed valuation.