from the securities, not the principal, can be spent. pe P.4-4 Disproportionate assessments lead to inequities. The town of Blair determines that it requires S22.5 million in property tax revenues to balance its budget. According to the town's property tax assessor, the town contains taxable property that it assessed at $900 2 percent of the amount levied. Further, the town grants homestead and similar exemptions equal to 3 per million. However, the town permits discounts for early payment, which generally average about cent of the property's assessed value. 1. Calculate the required tax rate, expressed in mils. 2. A resident's home is assessed at $300,000. He is permitted a homestead exemption of $10,000 and a senior citizen's exemption of $5,000. What is the resident's required tax payment prior to allowable discounts for early payment? 3. Blair assesses property at 100 percent of its fair market value. Sussex, a nearby town in the same county, assesses property at only 80 percent of fair market value. The county bases its own tax assess- ments on the assessments of the individual towns. However, the county grants no exemptions or dis- counts. Its tax rate is 8 mils a. A taxpayer in Sussex owns a home with a market value of $300,000-the same as that of the Blair resident. Compute and compare the amount of county tax that would be paid by each resident. b. Comment on why governments find it necessary to "equalize" tax assessments based on assess- ments of other governments