A building permit application for a commercial project valued at $2.8 million requires a permit fee of 0.65% of the construction value. What is the permit fee?
Correct Answer
B) $18,200
The permit fee is calculated as $2,800,000 × 0.0065 = $18,200. This represents the standard percentage-based fee structure used by many Florida jurisdictions.
Why This Is the Correct Answer
Option B is correct because the permit fee is calculated by multiplying the construction value by the percentage rate. Converting 0.65% to decimal form gives 0.0065, and $2,800,000 × 0.0065 = $18,200. This follows the standard percentage-based fee structure commonly used by Florida municipalities for commercial building permits.
Why the Other Options Are Wrong
Option A: $16,800
Option A ($16,800) is incorrect because it represents approximately 0.6% of the construction value, which is less than the required 0.65% fee rate.
Option C: $19,600
Option C ($19,600) is incorrect because it represents approximately 0.7% of the construction value, which exceeds the specified 0.65% fee rate.
Option D: $21,000
Option D ($21,000) is incorrect because it represents 0.75% of the construction value, which is significantly higher than the required 0.65% fee rate.
Memory Technique
Remember 'Move the decimal twice' - to convert percentage to decimal, move decimal point two places left (65 becomes 0.65 becomes 0.0065)
Reference Hint
Florida Building Code Chapter 1 - Scope and Administration, Section 109 - Fees, or local municipal fee schedules
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