A single-family home in Cheyenne, Wyoming has a fair market value of $400,000. The county mill levy is 60 mills. Using Wyoming's residential assessment ratio, what is the annual property tax owed on this home?
Correct Answer
D) $2,280
Step 1 — Calculate assessed value: $400,000 × 9.5% (Wyoming residential assessment ratio per W.S. 39-13-103) = $38,000. Step 2 — Convert mills to decimal: 60 mills = 0.060. Step 3 — Calculate annual tax: $38,000 × 0.060 = $2,280. Wyoming's residential assessment ratio of 9.5% is the critical state-specific element. The tax is applied to the assessed value, not the full market value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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.
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