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:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Unadjusted Trial Balance

A preliminary report of all accounts in the general ledger, before any adjusting entries are made to prepare financial statements.

Interim Financial Reports

financial statements prepared and published at intervals shorter than a fiscal year, such as quarterly or semi-annual reports.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.