A municipality requires an extra $3,000,000 for its operating budget next year. The current mill rate is 8.3573 and the assessed values of properties in the municipality remains constant at $8.58 billion. Calculate next year's mill rate.
A) 8.3497
B) 8.3923
C) 11.8538
D) 9.7684
E) 8.7070

Question

Quizplus · Accepted Answer

To find the new mill rate, calculate the total tax revenue needed, which is the current revenue plus the additional $3,000,000. Then divide this by the total assessed value and multiply by 1,000 to convert to mills. The calculation is: ((8.3573/1000 * 8.58 billion) + 3,000,000) / 8.58 billion * 1000 = 8.7070.

A Municipality Requires an Extra $3,000,000 for Its Operating Budget