Real Estate Math
A Minnesota property has an assessed value of $340,000 and a mill rate of 45 mills. What is the annual property tax?
A$15,300✓ Correct
B$7,650
C$12,750
D$17,000
Explanation
Property tax = Assessed value x Mill rate = $340,000 x (45/1000) = $340,000 x 0.045 = $15,300. In Minnesota, property taxes are calculated using class rates and local tax rates (expressed in mills). The actual calculation in Minnesota involves more complexity with class rates, but the basic formula applies.
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