If a City Is Taxing Property at the Maximum Rate

question 3

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:

Gaining Nothing

A situation where an action results in no net benefit or improvement compared to the original state or to a different action.

Strategy

A plan designed to achieve specific long-term objectives, often involving a series of actions or tactics.

Advertising

The action of calling public attention to products, services, or events through paid announcements by an identified sponsor.

Economic Effect

The impact of a decision or event on the economy, which can be observed through indicators like GDP, employment rates, and inflation.