Question- Knightstown has a property tax base with an appraised value consisting of $142,000,000 of taxable real property and
$78,000,000 of taxable personal property. the assessment ratio is 50%. Exemptions for the elderly reduce assessed value by
$3,000,000. The city has a planned budget of $3,500,000 and expects to receive $750,000 in nonproperty tax revenue.

a)compute the statutory property tax rate.
b) compute the effective property tax rate.
c) The smith family lives in knightstown their property has an appraised value of $42,000. what is their city property tax bill?

You need to carefully read the textbook before you hit the HW. Understanding the concepts in property tax is the key, such as appraised value versus assessed value.
Hints for the homework of this week, the appraised value includes two parts: real property and personal property. Both needs to be considered as taxable properties.

As the textbook indicates, the first step is to calculate the total appraised value (the two parts mentioned above), then calculate the gross assessed value by multiplying the appraised value by the assessment ratio (recall the assessment ratio reflects the relationship between market value and assessed value), then calculate the net assessed value by deducting the exemptions for elders from the gross assessed value. Statutory rate is residual nature: expenditure minus nonproperty tax revenues=property tax levy) divided by net assess value. Pls note: there is only one class of property in this HW, therefore, it is simpler than the formula on page 493

Book- fiscal administration 8th addition
John l. Mikesell