Real Estate Math

A South Dakota home is assessed at 85% of its market value of $250,000. If the mill rate is 18 mills, what is the annual property tax?

A$3,000
B$3,825✓ Correct
C$4,500
D$4,250

Explanation

Assessed value: $250,000 × 85% = $212,500. Annual tax: $212,500 × (18 ÷ 1,000) = $212,500 × 0.

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