A property in Arlington, Virginia has an assessed value of $600,000 and the local tax rate is $1.00 per $100 of assessed value. What is the annual property tax owed on this property?
Correct Answer
A) $6,000
Virginia property tax is calculated per $100 of assessed value. The formula is: (Assessed Value ÷ 100) × Tax Rate = Annual Tax. ($600,000 ÷ 100) × $1.00 = 6,000 × $1.00 = $6,000. This reflects how Virginia localities express their tax rates — per $100 of assessed value, which is the standard Virginia method.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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.
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