In an effort to attract new firms, local officials have proposed a reduction of taxes on the parcel of 75% of the existing mil rate.

a) Based off of property tax capitalization, explain the likely impact of such a policy and why it would occur.

b) How would the effects described above be different if all of the area's industrial property was assessed at 25% of fair market value except for this parcel (which has an assessment to sales ration of .99)?