(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.

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