Real Estate Math
A Minnesota homeowner's annual property tax bill is $6,240. The home is assessed at $390,000 (100% of market value). What is the effective tax rate?
A1.4%
B1.6%✓ Correct
C1.8%
D2.0%
Explanation
Effective tax rate = Annual tax / Assessed value = $6,240 / $390,000 = 0.016 = 1.
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