Real Estate Math
A Minnesota property has an assessed value of $275,000. The city's total tax capacity is $12,000,000 and the city needs to raise $3,000,000. What is the city's tax rate (in mills)?
A250 mills✓ Correct
B4 mills
C25 mills
D400 mills
Explanation
Tax rate = Revenue needed / Tax capacity = $3,000,000 / $12,000,000 = 0.25 = 25%.
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