Real Estate Math
A Texas property has an appraised value of $420,000. The county appraisal district applies an exemption of $25,000 for a homestead exemption. The tax rate is $2.20 per $100 of taxable value. What is the annual property tax?
A$8,690✓ Correct
B$9,240
C$8,580
D$7,975
Explanation
Taxable value = $420,000 − $25,000 = $395,000. Annual tax = ($395,000 ÷ $100) × $2.20 = 3,950 × $2.20 = $8,690.
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