Real Estate Math

A Fairbanks property is assessed at 85% of its market value of $300,000. The property tax rate is $12 per $1,000 of assessed value. What is the annual property tax?

A$3,060✓ Correct
B$3,600
C$4,080
D$30,600

Explanation

Assessed value = $300,000 × 0.85 = $255,000. Tax = ($255,000 ÷ $1,000) × $12 = 255 × $12 = $3,060. To solve this, multiply the relevant values: $300,000 and $12 at 85%.. The correct answer is $3,060.. This is a common calculation on the Alaska real estate exam.

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