A home in Frederick County has a full cash value (fair market value) of $400,000. Maryland assesses property at 100% of full cash value for tax purposes. The county tax rate is $1.06 per $100 of assessed value, and the state property tax rate is $0.112 per $100 of assessed value. What is the total combined annual property tax bill for this property?
Correct Answer
B) $4,688
Step 1 — Assessed Value: Maryland assesses at 100% of full cash value, so assessed value = $400,000. Step 2 — County Tax: ($400,000 ÷ $100) × $1.06 = 4,000 × $1.06 = $4,240. Step 3 — State Tax: ($400,000 ÷ $100) × $0.112 = 4,000 × $0.112 = $448. Step 4 — Total: $4,240 + $448 = $4,688.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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