Question

Station City has a total assessed valuation of $200,000,000. The budget of the city is $5,000,000. What is the tax rate in percent?

Answer 1

Take the budget of $5,000,000 ÷ $200,000,000 = 0.025 *100= 2.5%

Answer 2

The tax rate in percent is 2.5%.

Explanation:

The formula for tax rate in percent is

`\text{Tax rate in percent}=\frac{\text{Tax requirement}}{\text{Tax base}}* 100`

Given information: Station City has a total assessed valuation of $200,000,000. The budget of the city is $5,000,000. Here

`\text{Tax rate in percent}=\frac{\text{Budget}}{\text{Total assessed valuation}}* 100`

`\text{Tax rate in percent}=(5,000,000)/(200,000,000)* 100`

`\text{Tax rate in percent}=2.5`

Therefore the tax rate in percent is 2.5%.