A property in British Columbia is assessed at $800,000 for property tax purposes. If the municipal tax rate is 0.5% and the provincial school tax rate is 0.2%, what is the total annual property tax?
Correct Answer
C) $5,600
The total property tax is calculated by adding the municipal rate (0.5%) and school tax rate (0.2%) for a combined rate of 0.7%. Multiplying $800,000 by 0.7% equals $5,600 in annual property tax. Property tax rates vary significantly between municipalities and provinces.
Why This Is the Correct Answer
Option C is correct because the total property tax is calculated by combining both tax rates and applying them to the assessed value. Municipal tax rate (0.5%) plus provincial school tax rate (0.2%) equals 0.7% total rate. When applied to the $800,000 assessed value: $800,000 × 0.007 = $5,600. This represents the complete annual property tax obligation including both municipal services and provincial education funding components.
Why the Other Options Are Wrong
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A property in Alberta has an assessed value of $450,000 and the municipal tax rate is 0.7%. What is the annual property tax?
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