Question
Steuben County anticipates appropriations of $10,500,000 and revenue from the state and other sources of $900,000. During the last fiscal year, the tax rate was
Steuben County anticipates appropriations of $10,500,000 and revenue from the state and other sources of $900,000. During the last fiscal year, the tax rate was $0.85 per $100 of assessed valuation, applied to property assessed at $1,000 million. Uncollectible property taxes are negligible. In the current year, the county's reassessment program increased the aggregate assessed value of property to $1,050 million. Compute the property tax revenue raised during the last fiscal year.Compute the tax rate needed to balance the current budget. Assume that the Steuben County charter requires a balanced budget and that increasing the tax rate is politically unacceptable. Compute the maximum amount of appropriations that can be funded by property taxes given the increase in assessed valuation.
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