A county needs to raise $9,000,000 in property tax revenue. The total assessed value of all property in the county is $3,000,000,000. What mill rate must the county set?
Correct Answer
B) 3 mills
Step 1: Tax rate = Revenue needed ÷ Total assessed value = $9,000,000 ÷ $3,000,000,000 = 0.003. Step 2: Convert to mills: 0.003 × 1,000 = 3 mills.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Determining ownership days involves calculating the number of days each party (buyer and seller) owned the property during the relevant period (usually a year). This calculation is crucial for accurate proration.
The gross rent multiplier (GRM) is a quick method for estimating the value of income-producing property by multiplying the property's gross rent by a factor derived from comparable sales. GRM = Sale Price / Gross Rent.
IRV stands for Income, Rate, and Value. It represents the relationship between Net Operating Income (I), Capitalization Rate (R), and Property Value (V).
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