Wen Hung is buying a building to open an alterations business. One building costs $205,000 with a property tax rate of $4.45 per $100 on 60% assessed value. A second building costs $195,000 with a property tax rate of 42 mills per dollar on 75% assessed value. What is the difference in the property tax amounts?

Question

Quizplus · Accepted Answer

To find the property tax for each building, calculate the assessed value and apply the tax rate. For the first building: Assessed value = $205,000 * 60% = $123,000. Tax = $123,000 / 100 * $4.45 = $5,473.50. For the second building: Assessed value = $195,000 * 75% = $146,250. Tax = $146,250 * 0.042 = $6,142.50. The difference is $6,142.50 - $5,473.50 = $669.

Wen Hung Is Buying a Building to Open an Alterations