Two Cities Are Identical in All Respects Except City a Has

Multiple Choice

Two cities are identical in all respects except City A has an assessment ratio of 100% and City B has an assessment ratio of 25%. Both cities need to raise $1,000,000 in property tax revenues. The statutory tax rates on property are:

A) higher in City A than City B
B) higher in City B than City A
C) identical in both cities.
D) dependent on non-property tax revenues in each.