Use the following information to answer questions 9 through 12. The city of Tour

Question

Use the following information to answer questions 9 through 12. The city of Touristburg has proposed a total budget of $34.2 million for 2016. They have identified $16.8 million in non-property tax revenue and will use property taxes to fund the remaining portion of the budget and produce a perfectly balanced budget. The Net Assessed Value (NAV) of all property within the city limits for 2016 is $6.2 billion. 9. What is Touristburg's property tax levy for 2016? _________ 10. What is Touristburg's property tax rate per $1,000 of assessed value for 2016? ___________ 11. You own a home in Touristburg with an assessed value of $360,000. You are eligible for deductions worth a total of $25,000, and credits worth $500. What is your taxable property value (NAV) for 2016? ___________ 12. Using the information from questions 10 & 11, what is your total property tax liability? ____________

Explanation / Answer

Answer: Balanced budget is a situation where revenues are equal to expenses or exceeds expenses but not lower than the expenses. Data given are : Budget for 2016 is $ 34.2 million Non-tax property collection is $ 16.8 million Tax revenue on property collection under perfect balanced budget is $ 17.4 million i.e., (34.2 - 16.8 million) Working Notes: NAV of all property for 2016 is $ 6.2 billion or $ 6200 million Tax revenue on property is $ 17.4 million So, total revenue collected per NAV value of property is $ 0.00280645 ($ 17.4 / $ 6200 million) Accordingly answered as follows: 9 what is touristburg's property tax levy for 2016 $ 17.4 million 10 what is touristburg;s property tax rate per $1000 of assessed value for 2016 $ 2.806452 ($ 1000*0.00280645) 11 You own a home in Touristburg with an assessed value of $360,000. You are eligible for deductions worth a total of $25,000, and credits worth $500. What is your taxable property value (NAV) for 2016? $ 334500 ($ 360000-25000-500) 12 Using the information from questions 10 & 11, what is your total property tax liability? $ 938.7580645 ($ 334500*0.00280645)

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