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The market value of a house is $500,000. The assessment rate is 30%. The Equalization Factor is 1.25. The tax rate is 70 mills. What are the annual ad valorem taxes?

Respuesta :

Answer:

$13,125

Explanation:

Given:

Market value = $500,000

Assessment rate = 30% = 30/100 = 0.30

Equalization Factor = 1.25

Tax rate = 70 mils = 70/1000 = 0.07

Computation of The annual ad valorem tax:

Assessed value = Market value × Assessment rate

= $500,000 × 0.30

= $150,000

The annual ad valorem tax = Assessed value × Equalization Factor × Tax rate

= $150,000 × 1.25 × 0.07

= $13,125

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