A property has an assessed value of $250,000 and the local tax rate is 15 mills. What is the annual property tax?
Correct Answer
B) $3,750
One mill equals $1 per $1,000 of assessed value, or 0.001. At 15 mills: $250,000 × 0.015 = $3,750 annual property tax.
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Related Topics & Key Terms
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Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
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