Real Estate Math
A Michigan property with a market value of $300,000 is assessed at 50% of value. The millage rate is 45 mills. What are the annual taxes?
A$6,750✓ Correct
B$13,500
C$3,375
D$7,500
Explanation
SEV = 50% x $300,000 = $150,000. Taxes = $150,000 x 0.045 = $6,750. To solve this, multiply the relevant values: $300,000 at 50%.. The correct answer is $6,750.. This is a common calculation on the Michigan real estate exam.
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