Real Estate Math
A Pennsylvania county assesses property at 100% of market value. The annual tax rate is 26 mills. A home sells for $285,000. What are the annual property taxes?
A$5,700
B$7,410✓ Correct
C$7,800
D$6,900
Explanation
Assessed value = $285,000 × 100% = $285,000. Annual taxes = $285,000 × 26 mills = $285,000 × 0.026 = $7,410. Counties that assess at 100% of market value apply the millage rate directly to the sale/market price.
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