Dane Citys total assessed valuation for all of the property

Dane City\'s total assessed valuation for all of the property in its jurisdiction is $4,000,000,000. It needs $20,000,000 in revenue for the services it provides its citizens. Joe owns property that is assessed at $150,000. How much will he pay in property taxes?

Solution

Solution: He will pay $750 inTax

Valuation rate will be: $20,000,000 / $4,000,000,000 = 0.005 or 5 mills per $1 for valuation. Taxes will be calculated on assessed value of $150,000

Taxes will be $ 150,000 * 0.005 = $750 in tax