Question 5 Information: 6 Points Because of the downturn in the state's economy, the mayor of Stratton things that noncollectable taxes are likely to increase from 5 percent of total tax bills to 10 percent in the coming fiscal year. The total value of all the properties in the town of Stratton is $400 million and the approved budget is $3.75 million. Properties are assessed at their full value. A total of $4 million worth of properties is exempt from taxation. To minimize tax increases in the coming fiscal year, the mayor and town council have decided to take $500,000 out of the town's rainy-day fund (a reserve used to meet short-term budget shortfalls) and apply that money toward the coming year's budget. Task: In the space provided, identify each of the known items in the property tax formula then calculate the tax rate for the upcoming fiscal year's budget. 1. total assessed value 400,000,000 2. needed budget Blank 2 3. exemptions 4,000,000 4. non-property tax revenue Blank 4 5. net assessed value Blank 5 6. property tax rate Blank 6