Real Estate Math

A New Mexico property has a market value of $450,000. The annual property tax rate is 20 mills. In New Mexico, residential property is assessed at 1/3 of market value. What is the annual property tax?

A$2,000
B$3,000✓ Correct
C$9,000
D$6,000

Explanation

Assessed Value = $450,000 / 3 = $150,000. Property Tax = $150,000 x 20 mills / 1,000 = $150,000 x 0.

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