A residential property in Lancaster County, Nebraska has an actual (market) value of $320,000 as determined by the county assessor. The local tax levy for the area is 2.25 per $100 of assessed value. Nebraska law requires real property to be assessed at 100% of actual value. What is the annual property tax owed on this property?
Correct Answer
D) $7,200
Step 1 — Determine assessed value: Under Neb. Rev. Stat. § 77-201, Nebraska assesses real property at 100% of actual value. Assessed Value = $320,000 × 100% = $320,000. Step 2 — Convert levy to a decimal rate: The levy is $2.25 per $100 of assessed value, which equals a rate of 2.25 ÷ 100 = 0.0225. Step 3 — Calculate annual tax: $320,000 × 0.0225 = $7,200. The annual property tax is $7,200.
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