Tom owns a commercial property in Twin Falls, Idaho with a market value of $480,000. The county assessor has assessed the property at 100% of market value, which is standard practice in Idaho. The local tax levy rate is $12.50 per $1,000 of assessed value. Tom does not qualify for any exemptions. What is Tom's annual property tax bill?
Correct Answer
A) $6,000
Step 1 — Determine assessed value: Idaho assesses commercial property at 100% of market value, so assessed value = $480,000. Step 2 — Convert levy rate to decimal multiplier: $12.50 per $1,000 = $12.50 ÷ $1,000 = 0.0125. Step 3 — Calculate annual tax: $480,000 × 0.0125 = $6,000. Tom's annual property tax bill is $6,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
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