Knight has a property tax base with an appraised value consisting of $142,000,000 of taxable real property and $78,000,000 of taxable personal property. The assessment ratio is 50%. Exemptions for the elderly reduce assessed value by $3,000,000. The city has a planned budget of $3,500,000 and expect to receive $750,000 in none property tax revenue. Compute the statutory property tax rate. Compute the effective property tax rate. The Smiths family lives in Knightstown. Their property has an appraisal value of $42,000. What is their city property tax bill?

Question

Knight has a property tax base with an appraised value consisting of $142,000,000 of taxable real property and $78,000,000 of taxable personal property. The assessment ratio is 50%. Exemptions for the elderly reduce assessed value by $3,000,000. The city has a planned budget of $3,500,000 and expect to receive $750,000 in none property tax revenue. Compute the statutory property tax rate. Compute the effective property tax rate.  The Smiths family lives in Knightstown. Their property has an appraisal value of $42,000. What is their city property tax bill?