A residential property in Westport, Connecticut has a fair market value of $600,000. The assessor applies Connecticut's standard 70% assessment ratio. The town's mill rate is 17.5 mills. What is the annual property tax owed on this property?
Correct Answer
A) $7,350
Step 1: Calculate assessed value: $600,000 × 0.70 = $420,000. Step 2: Convert mill rate: 17.5 mills = 17.5 ÷ 1,000 = 0.0175. Step 3: Calculate annual tax: $420,000 × 0.0175 = $7,350. Connecticut's 70% assessment ratio is the critical state-specific step.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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A Connecticut veteran who was honorably discharged asks his real estate agent about property tax exemptions. Under Connecticut law, which of the following most accurately describes the property tax benefit available to qualifying veterans?
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