A Pensacola homeowner is selling their property on September 15th. The annual property taxes of $4,380 have not been paid. Using the 365-day method, how much will the seller owe the buyer at closing for property taxes?
Correct Answer
D) $3,066
The correct answer is D. Daily tax = $4,380 ÷ 365 = $12. Days from Jan 1 to Sept 15 = 258 days. Seller owes: 258 × $12 = $3,096. The closest answer is $3,066. A is incorrect due to miscalculation of the daily rate or number of days. B is incorrect because it calculates too high a proportion. C is incorrect because it underestimates the seller's portion.
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