The City of Weston is preparing its budget for calendar year 2013. After estimating revenues from all other sources, the City calculates that it must raise $8,000,000 from property taxes. You are given the following information regarding the tax rate: Property taxes to be collected $8,000,000 Estimated uncollectible property taxes $50,250 Total assessed value of property at beginning of 2013 $95,000,000 Expected reduction in assessed value from appeals $200,000 Assessed value of City property, not subject to tax $1,200,000 Adjustments to assessed values for senior citizen exemptions $1,000,000 Required: Compute the gross amount of property taxes required to be levied. Compute the tax rate per $100 of net assessed valuation. Determine the amount of property tax that a homeowner whose property is assessed at $100,000 will have to pay.
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The City of Weston is preparing its budget for calendar year 2013. After estimating revenues from all other sources, the City calculates that it must raise $8,000,000 from property taxes. You are given the following information regarding the tax rate:
Property taxes to be collected $8,000,000
Estimated uncollectible property taxes $50,250
Total assessed value of property at beginning of 2013 $95,000,000
Expected reduction in assessed value from appeals $200,000
Assessed value of City property, not subject to tax $1,200,000
Adjustments to assessed values for senior citizen exemptions $1,000,000
Required:
- Compute the gross amount of property taxes required to be levied.
- Compute the tax rate per $100 of net assessed valuation.
- Determine the amount of property tax that a homeowner whose property is assessed at $100,000 will have to pay.
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