Real Estate Math
Under Alaska property tax law, a property assessed at $280,000 has a millage rate of 18 mills. What is the annual property tax?
A$3,600
B$4,200
C$5,040✓ Correct
D$5,400
Explanation
Property tax = Assessed value × Mill rate ÷ 1,000. $280,000 × 18 ÷ 1,000 = $280 × 18 = $5,040. Using the values given ($280,000), apply the appropriate formula.. The correct answer is $5,040.. This is a common calculation on the Alaska real estate exam.
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