A home has a market value of $210,000. The assessed value is 50% of the market value. What are the annual real estate taxes if the tax levy is 53.25 mills?

Rationale

The annual real estate taxes are $5,591.25.

To determine the annual real estate taxes, we first find the assessed value by calculating 50% of the market value of $210,000, which is $105,000. Then, we multiply the assessed value by the tax rate of 53.25 mills, converting mills to a decimal (0.05325) to find the tax amount: $105,000 × 0.05325 = $5,591.25.

A ($2,236.50) YOUR ANSWER

This amount does not correctly reflect the tax calculation based on the assessed value and the given tax rate. It likely results from a miscalculation, perhaps assuming a lower assessed value or misapplying the mill rate.

B ($3,943.66) YOUR ANSWER

Similar to option A, this figure does not correspond to the correct assessed value of $105,000 multiplied by the tax rate. This amount suggests an incorrect calculation, possibly from misunderstanding the conversion of mills to a decimal format.

C ($5,591.25) CORRECT

This is the correct calculation of the annual real estate taxes based on the assessed value of $105,000 and the tax levy of 53.25 mills, confirming the accurate application of both the assessed value and the mill rate.

D ($11,182.50) YOUR ANSWER

This amount reflects an incorrect understanding of the tax computation, possibly derived from miscalculating the assessed value or mistakenly doubling the tax amount. It does not relate to the proper application of the assessed value or the mill rate.

Conclusion

The calculation of annual real estate taxes involves determining the assessed value and applying the mill rate accurately. For this home, with an assessed value of $105,000 and a tax levy of 53.25 mills, the resulting taxes amount to $5,591.25. Understanding the steps in this calculation is essential for accurate property tax assessments.

A home has a market value of $210,000. The assessed value is 50% of the market value. What are the annual real estate taxes if the tax levy is 53.25 mills?

The annual real estate taxes are $5,591.25.

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