Question

A buyer is purchasing a property with a fair market value of 94,675, which has an assessed value of 37,870. If the mill rate is 30, what will the buyer likely pay annually in taxes?

Answer 1

To calculate the annual taxes the buyer is likely to pay, multiply the assessed value by the mill rate. The taxable value is then used to determine the annual taxes based on the local tax rate.

Step-by-step explanation:

To calculate the annual taxes the buyer is likely to pay, we first need to find the taxable value of the property. The taxable value is determined by multiplying the assessed value by the mill rate. In this case, the taxable value would be 37,870 x 30 = 1,136,100. The buyer would then pay taxes based on this taxable value, which would depend on the local tax rate. Without knowing the specific tax rate, we cannot calculate the exact amount the buyer would pay annually in taxes. However, once the tax rate is known, the buyer can multiply the taxable value by the tax rate to determine the annual taxes.