Pete’s Warehouse has a market value of $5,000,000. The property in Pete’s area is assessed at 40% of the market value. The tax rate is $105.10 per $1,000 of assessed value. What is Pete’s property tax?
To calculate Pete's property tax, we need to follow these steps:
Step 1: Calculate the assessed value of Pete's Warehouse.
The property in Pete's area is assessed at 40% of the market value.
Assessed value = 40% * Market value
Assessed value = 40% * $5,000,000
Step 2: Calculate the assessed value in dollars.
Assessed value in dollars = Assessed value / 100
Assessed value in dollars = (40% * $5,000,000) / 100
Step 3: Calculate the property tax.
The tax rate is $105.10 per $1,000 of assessed value.
Property tax = (Assessed value in dollars / $1,000) * Tax rate per $1,000
Property tax = ((40% * $5,000,000) / 100) / $1,000 * $105.10
Now, let's calculate it:
Assessed value in dollars = (40% * $5,000,000) / 100
Assessed value in dollars = $2,000,000
Property tax = ($2,000,000 / $1,000) * $105.10
Property tax = $2,000 * $105.10
Property tax = $210,200
Therefore, Pete's property tax is $210,200.