A residential home in Shelby County, Tennessee has an appraised value of $280,000. What is the assessed value used to calculate the property tax?
Correct Answer
A) $70,000
Tennessee law requires residential property to be assessed at 25% of its appraised value. Therefore: $280,000 × 25% = $70,000. This assessed value is then multiplied by the applicable local tax rate to determine the actual tax bill.
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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.
More Valuation Questions
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
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- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
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- → Three depreciation:
- → Cap rate:
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