Business

Calculation of Property Tax Use the information below to perform the calculation and answer questions 1 & 2. The Mundane Count/ Council has the following information concerning the upcoming fiscal years budget • Planned Expenditure: $22,550,000 • Sales Tax Revenue: $4,000,000 • Total Market Value of Property: $781,250,000 • User Charge Revenue: $3,250,000 • Income Tax Revenue: $1,600,000 • Miscellaneous Revenue: $1,200,000 • Assessment Ratio: 50% 1. What property tax rate does the council need to set to balance the budget? Express your answer as a percentage and round off to the nearest tenth (e.g., 5.7%): % 2. A residence in Mundane County has an assessed value of $15,000. Its owner qualifies for an old-age exemption of $1,000 and a homestead exemption of $2,000. The property tax rate is $5.00 per $100 of assessed value. What will the property tax bill on this property equal? Express your answer in dollars and round off to the nearest tenth if necessary (e.g., $335.5): $