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The most important parts is the effective property tax rate in district A and the following question. Consider the following scenarios for the fictional state of Inequity which consists of five local districts. Assume that Inequity has a gauranteed tax base school aid formula as follows:
Gi=B+(V*-Vi)ri
Use this formula to complete the table:
District assessed value Membership Operation mileage Revenue per pupil
A $40000000 1000 38
B 30000000 500 34
C 40000000 500 30
D 100000000 1000 34
E 96000000 800 28
What is the effective property tax rate in District Aif the assessment ratio in the state of Inequity is
a. 100%?
b. 40%
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