A seller's current real estate tax is $1,175 per year including the homeowner's exemption. The condo is sold to a buyer for $197,500. Assuming no local assessments are added to the tax bill, what will be the buyer's real property tax bill including the homeowner's exemption?

Question

Quizplus · Accepted Answer

The seller's current real estate tax including the homeowner's exemption is $1,175 per year. This exemption may not transfer to the buyer, but they may apply for their own exemption. Assuming the buyer applies for and receives the same $7,000 exemption, the taxable value would be $190,500 ($197,500 - $7,000) and the tax rate is not given. However, assuming the same tax rate as the seller, the buyer's tax bill would be (taxable value x tax rate) = ($190,500 x 0.01) = $1,905. Therefore, the correct answer is B.

A Seller's Current Real Estate Tax Is $1,175 Per Year