A property's assessed value is $180,000 and the local mill rate is 25 mills. What is the annual property tax?
Correct Answer
C) $4,500
Property tax = Assessed value × Mill rate. One mill = $0.001 per dollar. $180,000 × 0.025 = $4,500.
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Related Topics & Key Terms
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Related Concepts
Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
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.
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