Real Estate Math
An Arizona property has a tax rate of 10.5 mills (0.0105). The property is assessed at 10% of its $480,000 full cash value. What are the annual taxes?
A$5,040
B$504✓ Correct
C$4,800
D$5,244
Explanation
Assessed value = $480,000 × 10% = $48,000. Annual tax = $48,000 × 0.0105 = $504.5 mills = 1.05% = 0.0105. $48,000 × 0.0105 = $504. But if mill rate = $10.50 per $1,000: ($48,000 ÷ $1,000) × $10.50 = 48 × $10.50 = $504.
Related Arizona Real Estate Math Questions
- An Arizona property has an annual property tax bill of $3,600. The tax is paid in two installments. The seller is closing on October 1. Using a 365-day proration, how many days of taxes has the seller already 'used' (January 1 through September 30)?
- How many square feet are in a quarter section of land?
- A title insurance premium of $750 is paid at closing for a $300,000 property. What is the rate per $1,000 of coverage?
- An Arizona property sold for $350,000. The total commission rate is 6%. The listing broker and buyer's broker split the commission 50/50. How much does each broker receive?
- A property generates $36,000 annual gross rent. The vacancy and credit loss is 5%. What is the effective gross income (EGI)?
- A broker sold a property for $525,000 and received a 5.5% commission. The broker splits 50% with the cooperating broker, who then pays their salesperson 60%. How much does the cooperating salesperson earn?
- An investment property sold for $500,000. The investor paid $350,000 five years ago. What is the percentage gain?
- A property sold for $340,000. The buyer made a 15% down payment. What is the LTV ratio on the mortgage?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →