ValuationProperty_taxMEDIUM
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.
Answer Options
A
$2,950.00B
$3,000.00C
$9,000.00D
$9,050.00Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Valuation Question
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Background Knowledge for Valuation
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Real World Application in Valuation
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Related Topics & Key Terms
Key Terms:
property_taxmill_levyassessed_valuehead_of_family_exemptioncalculation
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