6.3

 Terms to Know: Property Tax Assessed Value Decimal Tax Rate  Decimal Tax Rate formula= Amount to be Raised by Property tax Total Assessed Value

 Paynesville School District budgeted expenses of $6,000,000. Estimated income of $1,800,000. Total assessed value last year was $39,000,000.  Find the tax rate needed to meet expenses, correct to five decimal places.

1. Expenses – Estimated income = Property tax needed $6,000,000 - $1,800,000 = $4,200, Solve the Decimal Tax Rate formula… $4,200,000 / 39,000,000 = = (Tax rate)

 What is the decimal tax rate (3 decimal places)? 1. Expenses – Estimated income = Property tax needed $6,750,000 - $650,000 = $6,100, Solve the Decimal Tax Rate formula… $6,100,000 / 80,000,000 = = (Tax rate)

 What is the decimal tax rate (4 decimal places)? 1. Expenses – Estimated income = Property tax needed =$1,950, Solve the Decimal Tax Rate formula… $1,950,000 / 48,200,000 = = (Tax rate)

 Calculate the property tax due on Watson’s $60,000 property if his tax rate is $6.20 per $ Divide assessed value by 100 $60,000/100 = 600 (# of $100 units) 2. Tax rate x # of $100 units = property tax due $6.20 x 600 = $3,720

 Calculate the property tax due on $42,000 property if his tax rate is $3.736 per $ Divide assessed value by 100 $42,000/100 = 420 (# of $100 units) 2. Tax rate x # of $100 units = property tax due $3.736 x 420 = $1,569.12

 Calculate the property tax due on $120,000 property if his tax rate is $4.128 per $ Divide assessed value by 100 $120,000/100 = 1,200 (# of $100 units) 2. Tax rate x # of $100 units = property tax due $4.128 x 1,200 = $4,953.60

 Calculate the property tax due on Watson’s $60,000 property if his tax rate is $62 per $1, Divide assessed value by 1,000 $60,000/1,000 = 60 (# of $1,000 units) 2. Tax rate x # of $1,000 units = property tax due $62 x 60 = $3,720

 Calculate the property tax due on $67,500 property if his tax rate is $50.08 per $1, Divide assessed value by 1,000 $67,500/1,000 = 67.5 (# of $1,000 units) 2. Tax rate x # of $1,000 units = property tax due $50.08 x 67.5 = $3,380.40

 Calculate the property tax due on $13,500 property if his tax rate is $25.83 per $1, Divide assessed value by 1,000 $13,500/1,000 = 13.5 (# of $1,000 units) 2. Tax rate x # of $1,000 units = property tax due $25.83 x 13.5 = $348.71

 Calculate the property tax due on Watson’s $60,000 property if his tax rate is stated as 62 mills or 6.2 cents per $ of assessed value.  Mills / 1,000 = Mills rate in $ 62/1,000 = $0.062  Cents / 100 = Cents rate in $ 6.2/100 = $0.062  Property assessed amount x rate in $ = total tax amount $60,000 x $0.062 = $3,720

 Calculate the property tax due on $38,400 property if his tax rate is stated as 52 mills per $ of assessed value.  Mills / 1,000 = Mills rate in $ 52/1,000 = $0.052  Property assessed amount x rate in $ = total tax amount $38,400 x $0.052 = $1,996.80

 Calculate the property tax due on $32,100 property if his tax rate is stated as 3.8 cents per $ of assessed value.  Cents / 100 = Cents rate in $ 3.8/100 = $0.038  Property assessed amount x rate in $ = total tax amount $32,100 x $0.038 = $1,219.80