Chapter 20, Problem 52ES

To determine

Whether the city must increase the tax rate or reassess the property value if the property tax rate is $\$0.0162$ per $\$1$ of assessed valuation, the expected increment in expenses is $\text{\$85,000}$ over $\text{\$1,206,000}$. The cost of reassessment is $\text{\$28,500}$ which increases the assessed value of the property to the amount $\text{\$85,443,000}$.