How to Raise $4 Million Without Increasing Property Tax Rate in Wheeler Town?

What should Wheeler town do to raise $4 million without increasing the property tax rate?

How much must Wheeler set the town's total assessed value at?

Answer:

To raise $4 million without increasing the property tax rate of .035 per dollar, Wheeler must set the town's total assessed value at $114,285,714.

Property tax rate plays a significant role in determining the budget requirements of a town. In the case of Wheeler town, where the mayor promised not to increase the property tax rate of .035 per dollar, the challenge lies in raising $4 million for the town's budget without burdening the residents with higher property taxes.

To find out the total assessed value needed to raise $4 million without increasing the property tax rate, we need to use the formula:

Total assessed value = Amount needed / Property tax rate

Substituting the values given in the question, we get:

Total assessed value = $4,000,000 / 0.035

Solving this equation, we get:

Total assessed value = $114,285,714.29

Since we need to round to the nearest dollar, the answer is:

Total assessed value = $114,285,714

Therefore, Wheeler must set the town's total assessed value at $114,285,714 to raise $4 million without increasing the property tax rate of .035 per dollar.

By maintaining the property tax rate and strategically setting the total assessed value, Wheeler town can successfully meet its budget requirements without burdening its residents with additional taxes.