Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.) Imagine you in charge of the complete property taxation process for a township in Illinois. You are observing four types of real estate property

1.) Imagine you in charge of the complete property taxation process for a township in Illinois. You are observing four types of real estate property

Property A: Market Value $ 400,000 (40 units)

Property B: Market Value $ 750,000 (20 units)

Property C: Market Value $ 2,000,000 (5 units)

Property D: Market Value $ 340,000 (100 units)

You would like to define the assessment value as 10% of the market value. The Equalization Factor for your township is 3.3. You are in the fortunate position that only your township is levying a property tax, so you do not have to worry about property taxes from any other entity. You receive the information that the township has a total budget of $2,000,000. Through various non-property tax related channels, it earns $1,300,000. The township itself owns 2 units of property C type (the administrative building and one used for community gatherings) and three of Property C type (it uses one property as a school, one as a kindergarten, and one for educational events for adults). There are no additional property tax exempted units of real estate. (30 Points)

A). Calculate the property tax levy the township has to raise. (2 Points)

B). Calculate the assessed value for each type of property. (8 Points)

C). Calculate the tax rate the township will have to raise (hint: do not forget about exemptions) (8 Points)

D.) Please calculate the Millage rate for this example. (2 Points)

E.) How much property taxes are owners of each type of real estate paying? (4 Points)

F.) You notice that there is one veteran living in your township. You think that it is appropriate to thank her for her service. You therefore decide that this person should receive a veteran exemption of $50,000. The person is living in a type A property. Please calculate the new effective tax rate for this person. (6 Points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Financial Accounting

Authors: Belverd E. Needles, Marian Powers

12th edition

978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283

More Books

Students also viewed these Accounting questions