Given the following information, compute the effective tax rate for the particular piece of property in percentage terms. Market value of property: $325,000, Assessed value of property: $250,000, Exemptions: $50,000, Taxes paid: $5,363.

Question

Quizplus · Accepted Answer

First, we need to calculate the taxable value of the property by subtracting the exemptions from the assessed value:

Taxable value = Assessed value - Exemptions
Taxable value = $250,000 - $50,000
Taxable value = $200,000

Next, we need to calculate the effective tax rate:

Effective tax rate = Taxes paid / Taxable value
Effective tax rate = $5,363 / $200,000
Effective tax rate = 0.026815 or 2.68%

Therefore, the correct answer is C) 1.65%.

Given the Following Information, Compute the Effective Tax Rate for the Particular