Property Valuation

A property is assessed at $180,000 and the local millage rate is 25 mills. What is the annual property tax?

A$4,500✓ Correct
B$450
C$2,500
D$45,000

Explanation

1 mill = $1 per $1,000 of assessed value. Tax = $180,000 × 25 mills ÷ 1,000 = $180,000 × 0.025 = $4,500.

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