Author Question: (Determination of property tax rate) The City of Weston is preparing its budget for calendar year ... (Read 345 times)

berenicecastro · **on:** Jul 5, 2018

(Determination of property tax rate)

The City of Weston is preparing its budget for calendar year 2013 . After estimating revenues from all other sources, the City calculates that it must raise 7,000,000 from property taxes.

You are given the following information regarding the tax rate:
Property taxes to be collected 7,000,000
Estimated uncollectible property taxes 70,707
Total assessed value of property at beginning of 2013 65,000,000
Expected reduction in assessed value from appeals 200,000
Assessed value of City property, not subject to tax 1,400,000
Adjustments to assessed values for senior citizen exemptions 1,000,000

Required:
a. Compute the gross amount of property taxes required to be levied.
b. Compute the tax rate per 100 of net assessed valuation.
c. Determine the amount of property tax that a home owner whose property is assessed at 35,000 will have to pay.

Question 2

Government colleges and universities must recognize donations received with purpose restrictions as:

a. Deferred revenue until the restrictions are met.
b. Operating revenues.
c. Nonoperating revenues.
d. None of the above.

al · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

a. Required property tax levy: 7,000,000 + 70,707 = 7,070,707
b. Tax rate per 100 of net assessed valuation:

Total assessed value at start of 2009 65,000,000
Less: Reduction due to appeals 200,000
City property, not taxable 1,400,000 Senior citizen exemptions 1,000,000 2,600,000
Net assessed value of property 62,400,000

Required property tax levy / Net assessed value of property =
7,070,707 / 62,400,000 = .1133

Tax rate per 100 of net assessed valuation = 11.33

c. Tax rate on property assessed at 35,000 = 35,000 X .1133 = 3,965.50

Answer to Question 2

C