A commercial property in Denver, Colorado has an actual value of $800,000 as determined by the county assessor. The commercial assessment rate is 27.9% and the total mill levy for the property is 80 mills. What is the annual property tax owed on this property?
Correct Answer
B) $17,856
Step 1 — Calculate assessed value: $800,000 × 27.9% = $800,000 × 0.279 = $223,200. Step 2 — Calculate property tax: $223,200 × (80 mills ÷ 1,000) = $223,200 × 0.080 = $17,856. The annual property tax is $17,856. Colorado commercial properties are assessed at 27.9% of actual value under C.R.S. § 39-1-104.2, and the tax is calculated by applying the mill levy (expressed as dollars per $1,000 of assessed value) to the assessed value.
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