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Determining of property tax rate The county legislature approved the budget for 2019. Revenues from property...

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:

Homestead	$2,500,000
Veterans	1,000,000
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

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.

Expert Solution

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

ekkarill92 answered 1 year ago

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