Question

The county of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is (be sure to round the tax rate to the nearest hundred thousandth before converting to mills):

Answer 1

Blue's tax rate should equal 0.57%

Step-by-step explanation:

To calculate Blue's tax rate we have to divide the amount of money they need to meet its budget requirements by the total value of assessed property.

Blue's tax rate = ($800,000 / $140,000,000) x 100 = 0.0057 x 100 = 0.57%

Most cities use property taxes to raise revenue, and it probably is the most commonly used method. Other taxes include municipal sales taxes and municipal income taxes.