Question

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

Answer 1

Answer: $17870

Explanation:

Based on the information given in the question, the property tax will be calculated as:

= [$300,000 × 1.4%] + [($983,500 - $300,000) × 2%]

= [$300,000 × 1.4%] + [$683,500 × 2%]

= ($300,000 × 1.4/100) + ($683500 × 2/100)

= ($300,000 × 0.014) + ($683500 × 0.02)

= $4,200 + $13,670

= $17870