18.(Determination of property tax rate)The City of Weston ispreparing its budget for calendar year 2009. After estimatingrevenues from all other sources, the City calculates that it mustraise $7,000,000 from property taxes. You are given the followinginformation regarding the tax rate:
| Property taxes to be collected | $ 7,000,000 |
| Allowancefor uncollectible property taxes = | 1% of the levy |
| Totalassessed value of property at beginning of 2009 | $ 65,000,000 |
| Expectedreduction in assessed value from appeals | $ 200,000 |
| Assessedvalue of City property, not subject to tax | $ 1,400,000 |
| Adjustments to assessed values for senior citizen exemptions | $ 1,000,000 |
a. Compute the gross amount of property taxesrequired to be levied.
b. Compute the tax rate per $100 of net assessedvaluation.
c. Determine the amount of property tax that a homeowner whose property is assessed at $35,000 will have topay.
