Question

Tax rate is calculated based on:

a. The local tax requirements and the tax base
b. The assessment of the property
c. A flat tax amount approved by the local taxing authority
d. A tax rate approved by the state legislature

Answer 1

The tax rate is typically based on local tax requirements and the taxable property's assessed value, where local governments use these property taxes as a vital revenue source for funding services.

Step-by-step explanation:

Tax rate is primarily calculated based on the local tax requirements and the tax base, which includes factors such as the assessed fair market value of property, whether it is real estate or a form of business property. Local governments rely on property taxes to fund essential services and are often the main source of their revenue. The process involves a government official, typically a local assessor, determining the property's value, and then applying a proportional tax rate to that value. Especially at the state and local level, taxes have been rising in accordance to the gradual rise in spending over the last few decades. Tax systems aim to be understandable and just, facilitating the willingness of the public to pay their taxes and ensuring the adequate funding of government operations.