Ford Motor Company decided against building a new plant in California because of the high cost of taxes. The state of California proposed an assessed rate of 52% of the estimated market value of the plant. The tax rate proposal was $233.00 per $1,000 of assessed value. What would Ford Motor pay in property taxes per year if it decided to build a $25 million plant?

Question

Quizplus · Accepted Answer

$25,000,000 × .52 = $13,000,000; $13,000,000/$1,000 = 13,000; 13,000 × $233.00 = $3,029,000.

Ford Motor Company Decided Against Building a New Plant in California