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?
0.4 * 5,000,000 = 2,000,000
(2,000,000 / 1,000) * 105.1 = ?
To calculate Pete's property tax, we need to follow these steps:
Step 1: Determine the assessed value of Pete's warehouse.
Since the property in Pete's area is assessed at 40% of the market value, we can find the assessed value by multiplying the market value by 40% (or 0.40).
Assessed value = Market value * 0.40
Assessed value = $5,000,000 * 0.40 = $2,000,000
Step 2: Calculate the property tax.
To calculate the property tax, we need to know the tax rate per $1,000 of assessed value. In this case, the tax rate is $105.10 per $1,000 of assessed value.
Property tax = (Assessed value / $1,000) * Tax rate
Property tax = ($2,000,000 / $1,000) * $105.10
Property tax = 2000 * $105.10
Property tax = $210,200
Therefore, Pete's property tax is $210,200.