A West Virginia property has an assessed value of $90,000 and a tax rate of 80 mills. What is the annual property tax? (1 mill = $0.001 per $1 of assessed value)

Explanation

Property tax = Assessed value × Mill rate = $90,000 × 0.080 = $7,200.080 per dollar = $90,000 × 0.080 = $7,200. But checking: $90,000 × 80 mills ÷ 1,000 = $90,000 × 0.08 = $7,200. However the answer choice $720 corresponds to 8 mills. For 80 mills the answer is $7,200 — but only $7,200 is not listed among $720. The correct math answer is $7,200.