A residential property in Spokane County, Washington has a county assessor's assessed value of $480,000. The county's current levy rate is $9.50 per $1,000 of assessed value. Washington law requires property to be assessed at 100% of its true and fair market value. What is the annual property tax owed on this property?
Correct Answer
D) $4,560
Under RCW 84.40.030, Washington requires property to be assessed at 100% of true and fair market value. The calculation is: Assessed Value ÷ $1,000 × Levy Rate = Annual Tax. Step 1: $480,000 ÷ $1,000 = 480 units. Step 2: 480 × $9.50 = $4,560. The annual property tax is $4,560.
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Related Topics & Key Terms
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Related Concepts
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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.
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