Arizona City has a tax levy budget of $7,000,000. What is the tax rate if the total assessed value is $175,000,000?

Arizona City has a tax levy budget of $7,000,000. What is the tax rate if the total assessed value is $175,000,000?

• A. 2.5%
• B. 4%
• C. 12.25%
• D. 25%

Answer: (B)

To determine the tax rate, you need to divide the total tax levy budget by the total assessed value and then convert that value into a percentage. First, you have the tax levy budget of $7,000,000 and the total assessed value of $175,000,000. To find the tax rate, you perform the following calculation: 1. Divide the tax levy budget by the total assessed value: \[ \text{Tax Rate} = \frac{\text{Tax Levy Budget}}{\text{Total Assessed Value}} = \frac{7,000,000}{175,000,000} \] 2. This calculation gives you: \[ \text{Tax Rate} = 0.04 \] 3. To express this as a percentage, multiply by 100: \[ 0.04 \times 100 = 4\% \] Thus, the tax rate for Arizona City is indeed 4%. This calculation reflects how local governments establish tax rates based on their required revenue from property taxes, allowing them to meet budgetary needs based on the total assessed value of all taxable properties in the area.

To determine the tax rate, you need to divide the total tax levy budget by the total assessed value and then convert that value into a percentage.

First, you have the tax levy budget of $7,000,000 and the total assessed value of $175,000,000. To find the tax rate, you perform the following calculation:

1. Divide the tax levy budget by the total assessed value:

[

\text{Tax Rate} = \frac{\text{Tax Levy Budget}}{\text{Total Assessed Value}} = \frac{7,000,000}{175,000,000}

]

2. This calculation gives you:

[

\text{Tax Rate} = 0.04

]

3. To express this as a percentage, multiply by 100:

[

0.04 \times 100 = 4%

]

Thus, the tax rate for Arizona City is indeed 4%. This calculation reflects how local governments establish tax rates based on their required revenue from property taxes, allowing them to meet budgetary needs based on the total assessed value of all taxable properties in the area.