If a City Is Taxing Property at the Maximum Rate

question 21

Multiple Choice

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?

• A) Property tax rates increase.
• B) The property tax levy increases.
• C) Coefficients of dispersion increase.
• D) Property tax rates decrease.

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Definitions:

Harvest

The process of gathering mature crops from the fields.

Revenue

The total amount of money received by a company or government from its activities, such as sales of goods and services, before any expenses are subtracted.

Profit

Profit is the financial return or gain achieved from an investment or business venture after subtracting all expenses and costs.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, leading to market balance.