A residential property in Phoenix has an assessed value of $280,000. The property qualifies for the homeowner's exemption of $7,000. If the total tax rate is 8.5%, what is the annual property tax?
Correct Answer
A) $23,205
Correct: ($280,000 - $7,000) × 0.085 = $273,000 × 0.085 = $23,205. The homeowner's exemption reduces the taxable assessed value before applying the tax rate. Option B ($23,800) incorrectly uses the full assessed value without the exemption. Option C ($24,395) appears to use an incorrect tax rate calculation. Option D ($25,200) fails to apply the homeowner's exemption and may use wrong calculations.
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