Real Estate Math

An Idaho property has a market value of $550,000. The assessment ratio is 100% and the mill rate is 14 mills. What is the annual property tax?

A$5,500
B$7,700✓ Correct
C$14,000
D$55,000

Explanation

One mill = $1 per $1,000 of assessed value. Assessed value = $550,000 × 100% = $550,000. Tax = $550,000 × (14/1,000) = $550,000 × 0.014 = $7,700.

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