Question

What is the property tax amount on a $200,000 piece of property with a tax rate of 75 mills?

1) $200
2) $10,000
3) $15,000
4) $26,667

Answer 1

The property tax on a $200,000 property with a rate of 75 mills is calculated by converting the mill rate to a decimal and multiplying it by the property's value, resulting in a tax amount of $15,000.

Step-by-step explanation:

The property tax amount on a $200,000 piece of property with a tax rate of 75 mills (or 75 per thousand dollars of assessed property value) can be calculated as follows:

Firstly, we need to convert the mill rate to a decimal by dividing by 1,000.

75 mills = 75 / 1,000 = 0.075

Then, we multiply the property value by the converted tax rate:

$200,000 × 0.075 = $15,000

Thus, the correct answer is option 3, $15,000.