Given the following information, calculate the total annual tax liability of the homeowner. Market value of property: $350,000, Assessed value of property: 40 % of the market value, Exemptions: $2,000, State Millage Rate: 0.25 mills, County Millage Rate: 13.70 mills.

Question

Quizplus · Accepted Answer

Firstly, we need to calculate the assessed value of the property:
Assessed value = 40% of Market value = 0.4 x $350,000 = $140,000
Next, we need to calculate the total tax rate:
Total tax rate = State Millage Rate + County Millage Rate = 0.25 + 13.70 = 13.95 mills
To convert mills to dollars, we divide by 1,000:
13.95 mills / 1,000 = $0.01395
Finally, we can calculate the total annual tax liability by multiplying the assessed value by the total tax rate and then subtracting any exemptions:
Total tax liability = (Assessed value x Total tax rate) - Exemptions
Total tax liability = ($140,000 x $0.01395) - $2,000
Total tax liability = $1,925.10
Therefore, the best choice is C.

Given the Following Information, Calculate the Total Annual Tax Liability