A building has a market value of $229,000.00. If it is assessed at 50% of market value and the tax rate is 40 mills, find the property tax. I got 4,580
I agree.
To find the property tax, you can follow these steps:
Step 1: Calculate the assessed value of the building.
Since the building is assessed at 50% of its market value, you need to multiply the market value by 0.5.
Assessed Value = Market Value * 0.5
In this case:
Assessed Value = $229,000 * 0.5 = $114,500.
Step 2: Calculate the tax rate.
The tax rate is given as 40 mills. A mill is equal to 1/1000th of a dollar, so the tax rate in decimal form is 0.04.
Tax Rate = 40 mills = 0.04
Step 3: Calculate the property tax.
To find the property tax, multiply the assessed value by the tax rate.
Property Tax = Assessed Value * Tax Rate
In this case:
Property Tax = $114,500 * 0.04 = $4,580.
So, the property tax is $4,580.