The municipality of Waterloo needs $915,000 from property tax to meet its budget. The total value of
assessed property in Waterloo is $14,000,000. What is the tax rate per dollar? (Round your answer to the
nearest thousandth.)
A. $.07
B. $.065
C. $.071
My answer is B .065
I don't think any of these answers is correct. Multiplying 0.065 times 14,000,000, I get $910,000.
To determine the tax rate per dollar, you need to divide the amount of money needed from property tax ($915,000) by the total value of assessed property ($14,000,000).
Tax Rate = Amount of money needed from property tax / Total value of assessed property
Tax Rate = $915,000 / $14,000,000
Calculating this:
Tax Rate = 915,000 ÷ 14,000,000
Tax Rate ≈ 0.065357143
Rounding this to the nearest thousandth, the tax rate per dollar is approximately $0.065.
So, your answer of B. $0.065 is correct.