Real Estate Math
A property's market value is $450,000 and the assessment ratio is 85%. The mill rate is 18 mills. What is the annual property tax?
A$6,885✓ Correct
B$7,650
C$8,100
D$5,400
Explanation
Assessed value = $450,000 × 0.85 = $382,500. Tax = $382,500 × 18/1000 = $382,500 × 0.018 = $6,885. To solve this, multiply the relevant values: $450,000 at 85%.. The correct answer is $6,885.. This is a common calculation on the Vermont real estate exam.
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