Real Estate Math
A Minnesota property is assessed at $425,000. The homestead class rate for the first $500,000 of value is 1.0%. What is the property's tax capacity?
A$4,250✓ Correct
B$4,500
C$5,000
D$8,500
Explanation
Tax capacity = Assessed value x Class rate = $425,000 x 1.0% = $4,250.
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