Wellesville must meet a budget of $27,000. All of the city's income is derived from property tax. What rate of tax must they use if the assessed value of the taxable property is $1,173,913? (Answer to tenths)
how do you work this out?
Well, think about it.
Suppose their budget was 50% of the available property value. They'd have to tax it at 50%
Instead, their budget is 27000 out of an available 1173913. So, what % is that?
27000/1173913 = 0.023 or, 2.3%
2.3%
To calculate the tax rate, you can use the formula:
Tax Rate = Budget / Assessed Value
Given that the budget is $27,000 and the assessed value is $1,173,913, substitute these values into the formula:
Tax Rate = 27,000 / 1,173,913
To calculate it:
Tax Rate = 0.023
Therefore, Wellesville must use a tax rate of 0.023 (or 2.3%) to meet the budget of $27,000.
To calculate the tax rate, we need to divide the budget ($27,000) by the assessed value of the taxable property ($1,173,913). Here's how you can work it out step by step:
1. Divide the budget ($27,000) by the assessed value of the taxable property ($1,173,913):
Tax Rate = Budget / Assessed Value
Tax Rate = $27,000 / $1,173,913
2. Use a calculator to perform the division:
Tax Rate ≈ 0.023
3. Round the result to the nearest tenth:
Tax Rate ≈ 0.0.2
Therefore, Wellesville must use a tax rate of approximately 0.02 or 2%.