A property in Quincy is assessed at $480,000 for fiscal year 2025. The residential tax rate is $12.00 per $1,000 of assessed value. The property owner qualifies for a Clause 41C elderly exemption of $1,000. What is the owner's net annual property tax liability after applying the exemption?
Correct Answer
A) $4,760
Step 1: Calculate the gross annual property tax before exemption: ($480,000 ÷ $1,000) × $12.00 = 480 × $12.00 = $5,760. Step 2: Apply the Clause 41C elderly exemption of $1,000 (which is a direct dollar reduction from the tax bill, not from assessed value): $5,760 - $1,000 = $4,760. The net annual property tax liability is $4,760. Note: Massachusetts Clause 41C exemptions are applied as a direct reduction from the tax bill amount, not as a reduction to the assessed value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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