An Orlando investment property has a market value of $650,000. The assessment ratio is 100% of market value. If the property tax bill is $13,975, what is the millage rate?
Correct Answer
A) 21.5 mills
The correct answer is A. Millage rate = (Tax ÷ Assessed Value) × 1,000 = ($13,975 ÷ $650,000) × 1,000 = 0.0215 × 1,000 = 21.5 mills. B is incorrect because it fails to multiply by 1,000 to convert to mills. C is incorrect because it represents an unrealistically high millage rate. D is incorrect because it's the decimal equivalent before converting to mills.
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