Question

Chapter 11 Homework Navigation 12 3 4 56 Finish attempt .. B eBook A Print Question Not changed since last attempt Flag question Marked out of 3.00 Calculate property taxes collected ratio The statistical section of the city of Tallahassee's CAFR for the fiscal year ended September 30, 2016 contains several schedules regarding property tax collections. One schedule shows that (a) the total property taxes levied for the year was $40,352 thousand and (b) the amount of taxes collected in 2016 against that levy was $38,837 thousand. Another schedule contains a statement indicating that Florida statutes permit discounts of up to 4 percent for early payment of taxes; the schedule indicates that Tallahassee granted discounts and made adjustments in the amount of $1,433 thousand during 2016 Required: Calculate the property tax collection rate (ratio of current-year real property taxes collected to the current-year real property tax levy) Round answer to one decimal place (ex: 0.7845= 78.5 % ) Save Answers Next Support

Answer 1

The property taxes levied = $40,352

The property taxes collected = $38,837

Discount granted on early payment of taxes = $1,433

This implies that the actual property tax that would have been collected out of the taxed levied (if no adjustment was made for the discount given) i.e. Current year real property tax collected = $38,837 + $1,433 = $40,270

Property tax collection rate = Current year real property tax collected/current year real property tax levy

= $40,270/$40,352

= 0.99796 or 99.8%(rounded off)