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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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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