A building permit application fee is calculated as $2.50 per $1,000 of construction value, with a minimum fee of $150. What is the permit fee for a $45,000 renovation project?
Correct Answer
D) $150.00
The calculated fee would be ($45,000 ÷ $1,000) × $2.50 = $112.50. However, since this is below the minimum fee of $150, the permit fee would be $150.
Why This Is the Correct Answer
The correct answer is B) $150.00 because permit fee calculations must always consider both the calculated amount and any minimum fee requirements. First, we calculate the base fee: ($45,000 ÷ $1,000) × $2.50 = $112.50. However, since this calculated amount ($112.50) is less than the minimum required fee of $150, the permit fee defaults to the minimum amount of $150.
Why the Other Options Are Wrong
Option A: $112.50
Option D ($225.00) is significantly higher than both the calculated fee and minimum fee, suggesting an error in applying the rate formula.
Option B: $225.00
Option C ($187.50) appears to be an incorrect calculation that doesn't follow the given formula of $2.50 per $1,000 of construction value.
Option C: $187.50
Option A ($112.50) represents only the calculated fee based on construction value but fails to apply the minimum fee requirement, which is a critical component of permit fee structures.
Memory Technique
Remember 'MIN-MAX': Calculate the fee, then apply the MINimum - take the MAXimum of the two values.
Reference Hint
Florida Building Code Chapter 1 - Scope and Administration, Section on Permits and Fees
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