Topic Key Ideas, Formulas, and Techniques Examples
Calculating Property
Ta x Due, p. 400- Tax is assessed value multiplied by tax rate.
- Tax rates may be expressed as a rate per
thousand, percent, rate per hundred, or in mills.
Josh’s house has an assessed value
of $75,372. He pays real taxes to his
county, town, and school district.
The county rate is 14 mills, the town
rate is $8.57 per thousand, and
the school district rate is $1.35 per
hundred. How much does he pay to
each of these, and how much does
he pay in total?
(Example 9.3.3)Setting Property Tax
Rates, p. 401- Tax rate is total tax levy divided by total assessed
value. - Rates may be expressed as a rate per thousand,
percent, rate per hundred, or in mills.
The Bloome County legislature has
set the overall property tax levy for
2008 to be $39,600,000. The total
assessed value of taxable property
in the county is $4,873,595,000.
Determine the 2008 real estate tax
rate for the county. Express the
result as (a) a percent, (b) a rate per
hundred, (c) a rate per thousand,
and (d) mills.
(Example 9.3.4)Excise Taxes, p. 406 • Taxes may be placed on specifi c activities or items.- These taxes may be expressed in a variety of
different ways.
For the New York gasoline tax of 4%
up to $0.08 per gallon, what would
the tax be on a gallon of gas if the
price (before taxes) is (a) $1.79 per
gallon, (b) $2.00 per gallon, (c) $3.75
per gallon.
(Example 9.4.1)Estate Taxes, p. 408 • Taxes may be due on inherited property upon
someone’s death.- The taxable estate is the value of the deceased
property after certain items have been subtracted. - Federal estate taxes are a percent of the amount of
the taxable estate above a certain limit.
Suppose that Anselm died in 2006,
leaving assets worth $925,063. His
will left $400,000 to his wife, $75,000
to his church, and $35,000 to other
charities. At his death he had debts
totaling $54,053 and his funeral
expenses were $22,500. Executor’s
and other legal fees amounted to
$30,000. What was his taxable
estate? How much estate tax would
be owed on it?
(Examples 9.4.5 and 9.4.6)416 Chapter 9 Taxes