Property Valuation
A property's assessed value is $360,000 for tax purposes. A comparable home on the same street recently sold for $600,000. What assessment ratio is being applied?
A60%✓ Correct
B40%
C166%
D100%
Explanation
Assessment ratio = Assessed Value ÷ Market Value = $360,000 ÷ $600,000 = 0.60 = 60%. Many jurisdictions assess property at a fraction of market value; California under Prop 13 effectively assesses at 100% of purchase price but with limited annual increases.
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