A residential property in Helena, Montana has an appraised market value of $320,000. Montana assesses Class 4 residential property at 100% of market value for tax purposes, and the local mill levy is 250 mills. One mill equals $1 of tax per $1,000 of taxable value. What is the annual property tax owed on this property?
Correct Answer
C) $80,000
One mill equals $1 of tax per $1,000 of taxable value. With the facts stated in the question, taxable value is $320,000. The annual tax is $320,000 divided by 1,000, then multiplied by 250 mills: 320 × 250 = $80,000. Because the question states a 100% assessment rate and a 250-mill levy, the correct answer is $80,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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