You have been provided with the information listed below for the City of XYZ.

	2016		2017
market value of taxable property	$1.6 billion		increases by 3% from 2016 value
assessment ratio	30%		30%
collection rate	96%		95%
tax rate	3.25 per $100 AV		???

The City of XYZ is subject to a maximum increase in the property tax levy of 6 percent annually. Answer each of the questions below in order to determine what the maximum property tax rate could be in 2017. (Be sure to show your calculations.)

A.What was the property tax levy in 2016?

B.What is the maximum property tax levy that would be allowed in 2017?

C.What is the market value of taxable property in 2017?

D.What is the maximum property tax rate that the city could use in 2017? Express the rate in dollars per $100 assessed value.