Week 4 Homework
1)
Determining of property tax rate
The county legislature approved the budget for 2019. Revenues from property taxes are budgeted at
$800,000. According to the county assessor, the assessed valuation of all of the property in the county is
$50 million. Of this amount, property worth $10 million belongs to the federal government or to
religious organizations and, therefore, is not subject to property taxes. In addition, certificates for the
following exemptions have been filed:
$2,500,00
Homestead
0
Veterans 1,000,000
Old age, blindness, etc. 500,000
In the past, uncollectible property taxes averaged about 3 percent of the levy. This rate is not expected to
change in the foreseeable future. Using all of this information, determine
a. the property tax rate per $1,000 of assessed valuations that must be used to collect the desired
revenues from property taxes.
Round answer to two decimal places.
$22.91
800,000/.97 = 824,742.268
50 million-10 million = 40 million
40,000,000 – 2,500,000 – 1,000,000 – 500,000 = 36,000,000
824,742.268/36,000,000 = .0229095074
.0229095074 * 1,000 = 22.91
b. the levy on a piece of property that was assessed for $100,000 (after exemptions).
Use rounded answer from above. Round final answer to the nearest whole number.
$2,291
.0229095074 * 100,000 = 2,291
2)
Recording the adopted budget; determining property tax rate
Following are (a) a condensed summary of the General Fund budget adopted by the village of Crotonon-
Hudson, New York for the fiscal year 2017–2018, and (b) the total assessed value of taxable properties in
the village.
, Prepare the journal entry to record the budget and compute the property tax rate per $1,000 of taxable
assessed value.
Estimated revenues and other sources
Real property taxes $11,474,943
7,126,817
Non-property taxes and other
Total estimated revenues 18,601,760
Appropriated previously accumulated fund 425,000
balance
$19,026,760
Total estimated revenues and other sources
Appropriations
Police department $3,195,140
All other departments and other 8,869,106
Employee benefits 4,536,121
2,426,393
Transfer to debt service fund
$19,026,760
Total appropriations
$44,615,183
Assessed value of taxable real property
Prepare the journal entry to record the budget and compute the property tax rate per $1,000 of taxable
assessed value.
NOTE: Not all rows are needed to complete the journal entry. If an additional row is not needed, select
"No entry" as the Descriptions and leave the Debit and Credit answers blank (zero).
1)
Determining of property tax rate
The county legislature approved the budget for 2019. Revenues from property taxes are budgeted at
$800,000. According to the county assessor, the assessed valuation of all of the property in the county is
$50 million. Of this amount, property worth $10 million belongs to the federal government or to
religious organizations and, therefore, is not subject to property taxes. In addition, certificates for the
following exemptions have been filed:
$2,500,00
Homestead
0
Veterans 1,000,000
Old age, blindness, etc. 500,000
In the past, uncollectible property taxes averaged about 3 percent of the levy. This rate is not expected to
change in the foreseeable future. Using all of this information, determine
a. the property tax rate per $1,000 of assessed valuations that must be used to collect the desired
revenues from property taxes.
Round answer to two decimal places.
$22.91
800,000/.97 = 824,742.268
50 million-10 million = 40 million
40,000,000 – 2,500,000 – 1,000,000 – 500,000 = 36,000,000
824,742.268/36,000,000 = .0229095074
.0229095074 * 1,000 = 22.91
b. the levy on a piece of property that was assessed for $100,000 (after exemptions).
Use rounded answer from above. Round final answer to the nearest whole number.
$2,291
.0229095074 * 100,000 = 2,291
2)
Recording the adopted budget; determining property tax rate
Following are (a) a condensed summary of the General Fund budget adopted by the village of Crotonon-
Hudson, New York for the fiscal year 2017–2018, and (b) the total assessed value of taxable properties in
the village.
, Prepare the journal entry to record the budget and compute the property tax rate per $1,000 of taxable
assessed value.
Estimated revenues and other sources
Real property taxes $11,474,943
7,126,817
Non-property taxes and other
Total estimated revenues 18,601,760
Appropriated previously accumulated fund 425,000
balance
$19,026,760
Total estimated revenues and other sources
Appropriations
Police department $3,195,140
All other departments and other 8,869,106
Employee benefits 4,536,121
2,426,393
Transfer to debt service fund
$19,026,760
Total appropriations
$44,615,183
Assessed value of taxable real property
Prepare the journal entry to record the budget and compute the property tax rate per $1,000 of taxable
assessed value.
NOTE: Not all rows are needed to complete the journal entry. If an additional row is not needed, select
"No entry" as the Descriptions and leave the Debit and Credit answers blank (zero).
