Question

The current value of a property is $40,000. The property is assessed at 40% of its current value for real estate tax purposes, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed, what is the amount of tax due on the property?

Answer 1

Answer:

Tax due on the property : $ 960

Step-by-step explanation:

We know that the property is assessed at the 40% of it's current value.

First we are going to find the value assessed.

40% of $40,000 = 0.4 * 40,000 = $ 16,000

Now, at the value, we are aplying a factor of 1.5. This equalization factor is the multiplier we use to calculate the value of a property that is in line with statewide tax assessments

So, we do, 1.5* $16,000 = $24,000

Now we got that we the tax rate is $4 per $100 assessed.

So we got $24,000 * $4  / $100 = $ 960