A parcel in Durham has an assessed value of $402,600.00. The county tax rate is $0.62 per $100 of value and the municipality's rate is $0.42 per $100. What is the annual ad valorem tax bill?
Correct Answer
B) $4,187.04
Use the stated North Carolina formula or contract assumption: (402600 ÷ 100) × (0.62 + 0.42) = 4026.00 × 1.04 = $4,187.04. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
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