A residential property in the Matanuska-Susitna Borough has an assessor's market value of $480,000. The borough assesses property at 100% of market value. The local mill rate is 12.5 mills. The property owner qualifies for Alaska's senior citizen exemption under AS 29.45.030, which exempts the first $150,000 of assessed value. What is the owner's annual property tax bill?
Correct Answer
C) $4,125
Assessed value is $480,000 because the borough assesses at 100% of market value. Apply the $150,000 senior citizen exemption first: $480,000 - $150,000 = $330,000 taxable value. A 12.5 mill rate equals $12.50 per $1,000, so $330,000 / 1,000 x 12.5 = $4,125. The correct answer is option C.
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