A residential property in Santa Fe County has a market value of $360,000. New Mexico assesses residential property at one-third of market value. The applicable mill levy is 25 mills. The owner qualifies for New Mexico's Head of Family exemption, which reduces assessed value by $2,000. What is the owner's annual property tax bill?
Correct Answer
A) $2,950.00
Step 1 – Calculate assessed value: $360,000 × (1/3) = $120,000. Step 2 – Apply Head of Family exemption: $120,000 − $2,000 = $118,000 taxable assessed value. Step 3 – Apply mill levy: 25 mills = $25 per $1,000 of assessed value. $118,000 ÷ $1,000 × $25 = $2,950.00. The correct annual property tax is $2,950.00.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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