Real Estate Math
A property has an assessed value of $420,000. California's Proposition 13 limits the property tax rate to 1% of assessed value. What is the base annual property tax?
A$4,200✓ Correct
B$42,000
C$420
D$2,100
Explanation
Base property tax = Assessed value × 1% = $420,000 × 0.01 = $4,200 per year. Proposition 13 (1978) caps the base property tax rate at 1% of assessed value, with additional voter-approved bonds and assessments added on top.
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