Bob and Doug both own properties with market value $550,000. Bob's property value is assessed at
$620,000 while Doug's is assessed at $670,000. Suppose they face the same statutory tax rate of 1.5 percent. What are the effective tax rates faced by bob and Doug? Why would statutory tax rates differ from the effective tax rates?

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The Answer of Bob and Doug both own properties with market value $550,000. Bob's property value is assessed at
$620,000 while Doug's is assessed at $670,000. Suppose they face the same statutory tax rate of 1.5 percent. What are the effective tax rates faced by bob and Doug? Why would statutory tax rates differ from the effective tax rates?

Bob and Doug Both Own Properties with Market Value $550,000