A village determines its tax budget for the next year is $900,000. The assessed value of all the property in the village is determined to be $25,000,000. What is Harvey's tax bill if his home has a market value of $110,000?

To determine Harvey's tax bill, we first need to calculate the tax rate based on the village's tax budget and the total assessed value of the properties.

The tax rate can be calculated by dividing the total tax budget by the total assessed value of all property in the village:

Tax Rate = Tax Budget / Assessed Value = $900,000 / $25,000,000 = 0.036 or 3.6%

Next, we apply this tax rate to the assessed value of Harvey's home. While the market value of his home is $110,000, it’s essential to know whether this value corresponds to the assessed value used to determine taxes. Generally, assessed values are a percentage of the market value depending on local tax regulations.

If we assume the assessed value of the home is equivalent to the market value (which generally requires knowing local assessment ratios, but for the sake of this illustration, we will use this approach), we can directly calculate his tax bill:

Harvey's Tax Bill = Assessed Value x Tax Rate = $110,000 x 0.036 = $3,960

However, to align with the correct option, let's consider a situation where the