Question

The City of Weston is preparing its budget for calendar year 2020. After estimating revenues from all other sources, the City calculates that it must raise $5,000,000 from property taxes. You are given the following information regarding the tax rate:

            Property taxes to be collected                                                            $5,000,000

            Estimated uncollectible property taxes                                                   $70,707

            Total assessed value of property at beginning of 2020                      $63,000,000

            Expected reduction in assessed value from appeals                              $200,000

            Assessed value of City property, not subject to tax                             $1,300,000

            Adjustments to assessed values for senior citizen exemptions             $1,000,000

Required:

1. Compute the amount of property taxes required to be levied.
2. Compute the tax rate per $100 of net assessed valuation.
3. Determine the amount of property tax that a home owner whose property is assessed at $35,000 will have to pay.

Please show work and explain how did you get the answer.  

Answer 1