Best Buy has a warehouse with a market value of $5,000,000. The property in Best Buy's area is assessed at 40% of the commercial value. The tax rate is $105.10 per $1,000 assessed value. What does Best Buy pay in property tax?
A)$200,000
B)$210,200
C)$250,000
D)$110,000
E)None of these

Question

Quizplus · Accepted Answer

First, we need to find the assessed value of the property. The commercial value is $5,000,000, and the assessed value is 40% of that, so:
Assessed value = 0.4 * $5,000,000 = $2,000,000
Next, we can calculate the property tax:
Property tax = (Assessed value / $1,000) * Tax rate
Property tax = ($2,000,000 / $1,000) * $105.10
Property tax = $210,200
Therefore, the answer is B.

Best Buy Has a Warehouse with a Market Value of $5,000,000