A residential property in Kanawha County, West Virginia has an appraised fair market value of $250,000. The applicable levy rate is $10.00 per $1,000 of assessed value. What is the owner's annual property tax bill?
Correct Answer
A) $1,500
West Virginia assesses real property at 60% of appraised fair market value. Step 1: Assessed Value = $250,000 × 60% = $150,000. Step 2: Tax Bill = ($150,000 ÷ $1,000) × $10.00 = 150 × $10.00 = $1,500. The 60% assessment ratio must be applied before multiplying by the levy rate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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.
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