Real Estate Math
A Minnesota property has a market value of $450,000. The county assessment ratio is 100% and the mill rate (tax rate) is 15.5 mills. What is the annual property tax? (1 mill = $1 per $1,000 assessed value)
A$6,975✓ Correct
B$7,000
C$6,250
D$8,000
Explanation
Annual property tax = Assessed value x Mill rate = $450,000 x 0.0155 = $6,975. A mill rate of 15.5 mills means $15.50 per $1,000 of assessed value. Mill rates in Minnesota vary by taxing jurisdiction and are set annually by the county, city, school district, and other taxing authorities.
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