Real Estate Math
A Pennsylvania property has a market value of $280,000 and is assessed at 75% of market value. The millage rate is 22 mills. What is the annual property tax?
A$4,620✓ Correct
B$6,160
C$4,400
D$5,040
Explanation
Assessed value = $280,000 × 0.75 = $210,000. Annual tax = $210,000 × 22/1,000 = $210,000 × 0.022 = $4,620. Pennsylvania property taxes are calculated by multiplying the assessed value by the millage rate (mills per $1,000 of assessed value). Millage rates vary significantly by municipality and school district.
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