Real Estate Math

A Maryland property with a $450,000 assessed value is taxed at $1.40 per $100. The Homestead Tax Credit limits the increase to 10% from the previous year's $380,000 taxable assessment. What is the current year's taxable assessment?

A$380,000
B$418,000✓ Correct
C$450,000
D$437,000

Explanation

The Homestead Tax Credit caps the increase at 10% per year. Previous taxable assessment = $380,000.

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