The County legislature approved its 2020 budget. Revenues from property taxes are estimated to be $800,000. The assessed value of all the property in the county is $40 million. The County has received certificates for property tax exemption of consisting of $3 million for homestead exemptions, $1.3 million for veterans, $700,000 for old age, and $5 million for nonprofits. In addition, the County believes all property taxes will be collectible. What property tax rate per $1,000 of net assessed value must the County charge to collect sufficient property taxes to meet its $800,000 estimate

Question

Adelyn Shepherd

Business

13 May, 03:55

The County legislature approved its 2020 budget. Revenues from property taxes are estimated to be $800,000. The assessed value of all the property in the county is $40 million. The County has received certificates for property tax exemption of consisting of $3 million for homestead exemptions, $1.3 million for veterans, $700,000 for old age, and $5 million for nonprofits. In addition, the County believes all property taxes will be collectible. What property tax rate per $1,000 of net assessed value must the County charge to collect sufficient property taxes to meet its $800,000 estimate

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Answers (1)

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Nathanial Patel · Answer 1

The property tax rate is $26.67

Explanation:

In this question, first, we have to compute the net assessed value which is shown below:

= Property value - property tax exemption - homestead exemption - veterans - old age - non profits

= $40,000,000 - $3,000,000 - $1,300,000 - $700,000 - $5,000,000

= $30,000,000

Now the property tax equals to

= (estimated property taxes) : (Net assessed value) * 1000

= ($800,000 : $30,000,000) * 1000

= $26.67