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Real-Life Math -- Solution

1. How much did the property tax rate increase?

Next year's rate is $2.34 per $100 of the assessed property value. This year, the rate was $1.93 per $100 of the assessed property value.

$2.34 - $1.93 = $0.41

The tax rate increased by $0.41.

2. Your office building has a value of $147,000. What will be your new tax bill next year? How does it compare to the current year?

New tax bill = $147,000 / 100 x $2.34
New tax bill = $3,439.80

Old tax bill = $147,000 / 100 x $1.93
Old tax bill = $2,837.10

Difference = $3,439.80 - $2,837.10
Difference = $602.70

Your new tax bill is $3,439.80. That's $602.70 more than the current year.

3. Following the same rate increase, what will be the amount of your tax bill two years from now?

New rate = $2.34 + $0.41
New rate = $2.75

Tax bill = $147,000 / 100 x $2.75
Tax bill = $4,042.50

Two years from now, your bill will be $4,042.50.

"Being a city administrator means you need to be extremely comfortable with numbers. You can't afford to make mistakes. Every last penny has to be accounted for," says Michel Frisby. He works with the International City-County Management Association.


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