Real Estate Math
A Colorado buyer purchases land for $120,000. They make $80,000 in improvements to build a home. The total assessed value for tax purposes is $200,000 × 7.15% = $14,300. With a 65-mill levy, what is the annual property tax?
A$929.50✓ Correct
B$1,040.00
C$1,236.50
D$1,430.00
Explanation
Annual property tax = Assessed Value × Mill Levy = $14,300 × 0.065 = $929.50. To solve this, multiply the relevant values: $120,000 and $80,000 at 7.15%.. The correct answer is $929.50.. This is a common calculation on the Colorado real estate exam.
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