Question

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; millage rate: 33.95 mills.

Answer 1

Answer: $4,685.10

Explanation:

Market value of property: $350,000

Assessed value of property: 40% of $350,000

Exemptions: $2,000

Millage Rate: 33.95 mills.

Total Annual Tax Liability,

= 140,000 (40% × 350,000) - 2000

=138,000

Then,

138,000 × 33.95%

= 138,000 × 0.3395

= $4685.10