Real Estate Math
A Montana property has a taxable value of $45,000 and the local mill levy is 200 mills. What is the annual property tax?
A$900
B$4,500
C$9,000✓ Correct
D$450
Explanation
Property tax = Taxable Value x (Mill Levy / 1,000) = $45,000 x (200/1,000) = $45,000 x 0.20 = $9,000.20 per dollar: $45,000 x 0.20 = $9,000. Selecting $9,000 is option C, but the correct calc: 1 mill = $0.001; 200 mills = $0.200; $45,000 x 0.200 = $9,000. The answer is $9,000.
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