In New Mexico, residential property is assessed at one-third of its market value for property tax purposes. What is the assessed value of a home with a market value of $300,000?
Correct Answer
B) $100,000
New Mexico applies a 33.33% assessment ratio to residential property. $300,000 × 1/3 = $100,000 assessed value.
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Related Topics & Key Terms
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Related Concepts
Proration is the process of dividing expenses or income between the buyer and seller at the closing of a real estate transaction. This ensures each party pays or receives only their fair share based on the period of ownership.
Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
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