Real-Life Math -- Solution
1. How much did the property tax rate increase?
Next year's
rate is $2.34 per $100 of the assessed property value. This year, the rate
was $1.93 per $100 of the assessed property value.
$2.34
- $1.93 = $0.41
The tax rate increased by $0.41.
2.
Your office building has a value of $147,000. What will be your new tax bill
next year? How does it compare to the current year?
New
tax bill = $147,000 / 100 x $2.34
New tax bill = $3,439.80
Old
tax bill = $147,000 / 100 x $1.93
Old tax bill = $2,837.10
Difference
= $3,439.80 - $2,837.10
Difference = $602.70
Your
new tax bill is $3,439.80. That's $602.70 more than the current year.
3.
Following the same rate increase, what will be the amount of your tax bill
two years from now?
New rate = $2.34 + $0.41
New
rate = $2.75
Tax bill = $147,000 / 100 x $2.75
Tax
bill = $4,042.50
Two years from now, your bill will be $4,042.50.
"Being
a city administrator means you need to be extremely comfortable with numbers.
You can't afford to make mistakes. Every last penny has to be accounted
for," says Michel Frisby. He works with the International City-County Management
Association.