As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $900,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 45% and the tax rate to 45 mills.

(a)How much property tax (in $) was collected under the old rates?$ 

(b)How much more tax (in $) revenue will be collected under the new rates? 

 

Answer rating: 100% (QA)

a To calculate the property tax collected under the old rates 1 First we need to find the assessed ... View the full answer