EXAMPLE: Taylor’s property is assessed at $3800. The rate is 24 mills.
SOLUTION: $3800 assessed valuation
.024 tax rate in mills
------
$91.20 tax.
EXAMPLE: The town of Grant is to raise $4725 in tax. The property in the
town has an assessed valuation of $395,140. What is the rate?
If on $395,140 a tax of $4725 is to be raised, on $1 as much tax must be
raised as $395,140 is contained times in $4725, which is .0119+, or
about $.0119. This would be called $0.012, or 12 mills on the dollar.
EXAMPLE: Finch’s property is assessed at $5470. The tax rate is $1.95.
SOLUTION:
$1.95 the rate per hundred dollars
54.70 the number of hundreds of dollars assessed value
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$106.67 the tax.
INDIRECT TAXES are taxes placed upon goods by the national government,
and collected before the goods are sold to the consumer.