Finance
Which of the following statements about Washington State's property tax system is TRUE?
AProperty taxes are set by the state Legislature uniformly for all counties
BProperty taxes are a combination of state, county, city, school district, and special district levies, with the total mill rate varying by location✓ Correct
CProperty taxes are the same per square foot across the state
DCommercial properties are taxed at twice the residential rate in all Washington counties
Explanation
Washington property taxes are the sum of multiple overlapping levies from state, county, city, school district, fire district, and other special districts. The total tax rate (mill rate) varies significantly by location depending on applicable levies.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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