Real Estate Math
A property is assessed at $165,000. The county charges a 2.5% effective tax rate on assessed value. What is the annual property tax?
A$1,650
B$4,125✓ Correct
C$3,300
D$6,600
Explanation
Annual property tax = Assessed value x Tax rate = $165,000 x 2.5% = $165,000 x 0.025 = $4,125. To solve this, multiply the relevant values: $165,000 at 2.5%.. The correct answer is $4,125.. This is a common calculation on the Ohio real estate exam.
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