Intergovernmental transfer from state and other sources

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Reference no: EM131905350

Tax related. The city of Suburbia plans to receive $600,000 intergovernmental transfer from the State and other sources. Their planned expenses are $1 million. What is their tax levy? If the total appraised value of real and personal property equals $15 million and their property assessment ratio is 40% (no exemptions), what is their stutatory tax rate? Effective property tax rate? Currently, they rely on property taxes and intergovernmental revenues to balance their budget, and, historically, the state provided up to 60% of their budget. The city of Suburbia considers adopting an additional 2.5% local sales tax. Some argue that city is 50 miles away from another major urban area which may compete for sales. Discuss some of the arguments against/for this measure.

Reference no: EM131905350

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