A residential property in Kent County, Delaware has a market value of $320,000. The county applies an assessment ratio of 50% to determine assessed value. The combined millage rate for the property is 20 mills. What is the annual property tax owed on this property?
Correct Answer
B) $3,200
Step 1 — Calculate assessed value: $320,000 × 50% = $160,000. Step 2 — Convert millage rate: 20 mills = $20 per $1,000 of assessed value, or equivalently 0.020. Step 3 — Calculate annual tax: $160,000 × 0.020 = $3,200. Delaware counties each set their own assessment ratios and millage rates, so the assessed value used for taxation is the market value multiplied by the county's assessment ratio, not the full market value.
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Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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