Question

A town has a tax base of $411,000,000 and a budget of $850,000. What is the tax rate in terms of mills

Answer 1

Answer:

0.21%

Explanation:

The tax rate which would be needed to balance the budget can be calculated by using the formulas below:

Tax rate (in %) = (budget amount)/(tax base)*100

Tax rate = $850,000/$411,000,000*100

Tax rate = 0.0020681265206813 * 100

Tax rate = 0.20681265206813 %

Tax rate = 0.21%