1. (Determination of property tax rate)

The City of Weston is preparing its budget for calendar year 2013. After estimating revenues from all other sources, the City calculates that it must raise $7,000,000 from property taxes. You are given the following information regarding the tax rate:

Property taxes to be collected $7,000,000

Estimated uncollectible property taxes $70,707

Total assessed value of property at beginning of 2013 $65,000,000

Expected reduction in assessed value from appeals $200,000

Assessed value of City property, not subject to tax $1,400,000

Adjustments to assessed values for senior citizen exemptions $1,000,000

Required:

a. Compute the gross amount of property taxes required to be levied.

b. Compute the tax rate per $100 of net assessed valuation.

c. Determine the amount of property tax that a home owner whose property is assessed at $35,000 will have to pay.