Question

To compute the tax rate each taxing authority takes the total funds required for the upcoming fiscal year and ______.

a) Adds surplus funds
b) Divides by the assessed value of the properties
c) Deducts exemptions
d) Multiplies by the millage rate

Answer 1

Taxing authorities compute the tax rate by dividing the total required funds for the fiscal year by the assessed property values.

Step-by-step explanation:

To compute the tax rate each taxing authority takes the total funds required for the upcoming fiscal year and divides by the assessed value of the properties. This process is known as setting the millage rate, which will then be applied to the assessed value of each property to determine the amount of property tax owed. Property taxes are an important source of revenue for local municipalities and are based on the value of real estate owned by individuals or corporations.