6. A property's assessed value is $180,000. The tax rate is $15 per $1,000 of assessed value. What are the annual property taxes?
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A
$3,000
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B
$2,700
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C
$2,500
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D
$1,800
Explanation
Property tax calculation: Tax = (Assessed Value ÷ $1,000) × Tax Rate. Tax = ($180,000 ÷ $1,000) × $15 = 180 × $15 = $2,700. This is the standard mill-rate calculation. A mill rate (or millage) represents tax per $1,000 of assessed value. $15 per $1,000 = 15 mills. Annual property tax = $2,700. Variations on the exam: assessed value may be expressed as a percentage of market value (e.g., assessed at 80% of $225,000 = $180,000 assessed value); the mill rate may be expressed as decimals (0.015 × $180,000 = $2,700 — same result).
Source: Real Estate Exam, Property Tax Calculation
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