Real Estate Math
A house is purchased in California for $750,000. Under Prop 13, the base property tax rate is 1%. What is the maximum annual base property tax?
A$750
B$3,750
C$7,500✓ Correct
D$75,000
Explanation
Under Proposition 13, the base property tax rate is 1% of the assessed value (purchase price). Annual base tax = $750,000 × 0.01 = $7,500. Additional special assessments and bond measures may be added.
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