Principles Of Taxation For Business And Investment Planning 2020 Edition
Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Chapter 1, Problem 7AP
To determine

Compute the net effect on County G’s current year tax revenue from the given abatement.

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Blunt County needs $700,000 from property tax to meet its budget. The total value of assessed property in Blunt is $110,000,000. What is the tax rate of Blunt? Round to the nearest ten thousandth.
Two parcels of land are being considered for a new office building. Both sites cost the same amount but differ mainly in their annual property tax assessment. The parcel in City A has a current property tax of $15,500 per year. This tax is expected to increase by $500 per year starting at EOY 2. The other site, in City B, has a property tax of $12,000 per year with an anticipated increase of $2,000 per year starting at EOY 2. How much money would have to be set aside today for each site to provide for property taxes spanning the next 10 years? The interest rate is 12% per year.
You are tasked with calculating the property tax needed to fund the construction and operation of a $22.5 million complex. The facility's annual operating budget is forecast at $3.6 million, to be covered by revenues from programs offered at the facility. A 30-year general obligation bond with a rate of 5.5% will be issued to pay for the facility's construction costs. The net assessed value of property in the municipality is $725 million.   Calculate the amount that must be set aside each year to meet the bond's principal and interest obligations over 30 years.         Calculate the additional mileage required to cover the project's debt service.       For an owner of the property with a total assessed value of $15,000, by how much will his/her property tax increase?
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