If a city is taxing property at the maximum rate allowed and then the assessed
valuation of property in the city increases, which of the following can be expected to happen if the state does not allow an increase in the property tax levy?

Question

Quizplus · Accepted Answer

If the state does not allow an increase in the property tax levy, then the city cannot increase the total amount of taxes collected from property owners. However, if the assessed valuation of property in the city increases, then the city can choose to lower the property tax rate in order to collect the same amount of taxes from property owners. So, property tax rates would decrease in this scenario.

If a City Is Taxing Property at the Maximum Rate