Given the following information, compute the property tax rate for the community in percentage terms. Total budget expenditures: $108 million, Total non-property tax income: $50 million, Total assessed value of all properties: $2 billion, Total exemptions: $550 million. A. 2.5%

4%

Explanation:

The property tax rate required in the given question shall be determined through the following mentioned formula:

Property tax rate=[ (Budget expenditure-Non property tax income) / Assessed value of the all properties-Total exemption) ]

Based on the above formula:

Property tax rate=[ ($108 million - $50 million) / ($2,000 million-$550 million) ]

Property tax rate=$58 million/$1,450 million

Property tax rate=4%