Central County includes five townships (Nixon, Reagan, Davis, Greasy Creek, Navaho) and one city (Booneville). It is served by two independent school districts: Seagram United (Davis and Greasy Creek Townships) and Yeltsin Consolidated Schools (, Reagan, and Navaho Townships.) Each government in the county levies a property tax to finance its activities, although Booneville has also enacted a local earned income tax (it is expected to yield $750,000 in the next year). Property tax rates are applied to assessed value, defined to equal 50 percent fair cash value. Local unit tax rates fully overlap.

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A. Set the property tax rate for each taxing unit. Report each rate in dollars per $100 assessed value.

B. The Knight family owns property with a fair cash value of $120,00 in the Davis portion of Booneville. Prepare an itemized tax bill for them.

C. Suppose the current market value of the Kinghts' property is actually $225,000. What is their actual assessment ratio? What effective total property tax rate do they pay?

D. There are 1,800 students in the Seagram United School District and 600 students in the YeltsinSchools. How many dollars per pupil would a tax rate of $1 per 100 of assessed value yield in each district? Explain the significance of this comparison.

E. A factory with an estimated fair cash value of $12 million may be built in Navaho Township. If the factory has no impact on spending by any local government and there are no other changes in the county assessed values, what total property tax bill would the factory face?

F. Suppose the county undergoes a general reassessment that doubles the assessed values of everything taxing unit and that state law forbids any taxing unit from increasing its property tax levy by more that 3 percent. (The factory from question e, sadly enough, ends up in Mexico, so there is no impact from its value.) Assume that the property owned by the Knights (as above) doubles in assessed value and that the city, county and school districts increase their levies by the maximum allowed, but that there is no increase in levies by any township. What is their new property tax?