Real Estate Math
A Michigan seller's property has a taxable value of $155,000. They are claiming the PRE (Principal Residence Exemption). The total millage rate is 48 mills, of which 18 mills are school operating. What is the annual tax bill with the PRE?
A$7,440
B$4,650✓ Correct
C$2,790
D$4,185
Explanation
Without PRE: $155,000 × 48/1,000 = $7,440. PRE exempts 18 mills of school operating tax: $155,000 × 18/1,000 = $2,790 savings.
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