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Property assessed for tax purpose at 50% of market value. The tax rate being $4.90 per $100. Today rate has increased by $637. How much had the market value increased
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12 votes
Property assessed for tax purpose at 50% of market value. The tax rate being $4.90 per $100. Today rate has increased by $637. How much had the market value increased

User WheatBeak
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27 votes
27 votes

Answer:

If the property was assessed for tax purposes at 50% of its market value and the tax rate was $4.90 per $100, the tax on the property would be calculated as follows:

Tax = (market value * 50%) * (tax rate / 100) = market value * (tax rate / 200)

If the tax rate increased by $637, the new tax on the property would be:

New tax = market value * ((tax rate + $637) / 200)

Since the tax on the property is constant, we can set the original and new tax equations equal to each other and solve for the market value:

market value * (tax rate / 200) = market value * ((tax rate + $637) / 200)

Dividing both sides by the market value and rearranging the terms, we find that:

(tax rate / 200) = ((tax rate + $637) / 200)

Solving for the tax rate, we find that:

tax rate = $637

Since the property was assessed for tax purposes at 50% of its market value, the market value of the property is equal to twice the tax rate. Therefore, the market value of the property increased by 2 * $637 = $1274.

Step-by-step explanation:

User Uzun
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