Mary Slovick is buying a house. The first house she considers is assessed for $230,000 and has a property tax rate of $4.25 per $100. A second house has an assessment value of $250,000 and has a property tax rate of 34 mills per dollar. What is the difference in the property tax amounts?

Question

Quizplus · Accepted Answer

For the first house:
Property tax rate = $4.25 per $100
Assessment value = $230,000
To calculate the property tax amount, we need to calculate 4.25% of $230,000:
(Property tax rate/100) * Assessment value = (4.25/100) * $230,000 = $9,775

For the second house:
Property tax rate = 34 mills per dollar
Assessment value = $250,000
To calculate the property tax amount, we need to convert the mil rate to a decimal:
34 mills per dollar = 0.034
Then we can calculate the property tax amount:
(Property tax rate) * Assessment value = 0.034 * $250,000 = $8,500

The difference in property tax amounts is:
$9,775 - $8,500 = $1,275, which is option A.

Mary Slovick Is Buying a House