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 only option for the city to maintain revenue would be to decrease the property tax rate in response to the increased valuation of property. This would result in a decrease in property tax rates.

If a City Is Taxing Property at the Maximum Rate