A property has an assessed value of $190,000 and is subject to a mill rate of 20. Using a simplified calculation, what is the annual property tax?
Correct Answer
B) $3,800
One mill equals $1 of tax per $1,000 of assessed value, so a mill rate of 20 equals $20 per $1,000. Formula: Assessed Value ÷ 1,000 × Mill Rate = Property Tax. Calculation: $190,000 ÷ 1,000 × 20 = $3,800. This can also be expressed as: $190,000 × 0.020 = $3,800. Note: Montana's actual property tax system is more complex — residential properties are assessed at a taxable value percentage (set by the Montana Department of Revenue) before the mill levy is applied. This question uses a simplified direct-assessment model for exam purposes.
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