Arizona Real Estate License Practice Exam 2026 – All-in-One Resource to Pass with Confidence!

Question: 1 / 1505

If a city has $3,000,000 in revenue and an assessed property value of $75,000,000, what tax rate would that result in?

2%

3%

4%

To determine the tax rate based on city revenue and assessed property value, you can use the formula:

Tax Rate = (Revenue / Assessed Property Value) × 100

In this scenario, the city's revenue is $3,000,000, and the assessed property value is $75,000,000. Plugging these values into the formula gives:

Tax Rate = ($3,000,000 / $75,000,000) × 100

Simplifying this calculation:

1. Divide $3,000,000 by $75,000,000, which equals 0.04.

2. Multiply 0.04 by 100 to convert it to a percentage, resulting in a tax rate of 4%.

This calculation shows that the tax rate necessary to generate $3,000,000 from a property base of $75,000,000 is indeed 4%. This answer is crucial as it relates the city’s ability to fund operations through property taxes to the taxable value of real estate within the jurisdiction.

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