Question

In the given example of a property assessed at $120,000 with a tax rate of $1.50 per $100 of assessed value, how is the tax computed?

a) $1,800
b) $12,000
c) $1,200
d) $180

Answer 1

The total property tax is calculated by dividing the assessed value by $100 to determine the number of tax units and then multiplying this by the tax rate per unit. The assessed value of $120,000 results in a total tax of $1,800.

Step-by-step explanation:

The tax computation involves applying the tax rate to the assessed property value. In this case, the property is assessed at $120,000 and the tax rate is $1.50 per $100 of assessed value.

To calculate the total tax:

1. First, divide the assessed value by $100 to find the number of units that are subject to tax:
   $120,000 ÷ $100 = 1,200 units
2. Next, multiply the number of units by the tax rate:
   1,200 units × $1.50 = $1,800

Therefore, the total property tax on a $120,000 assessed property at a tax rate of $1.50 per $100 of assessed value is $1,800, which corresponds to option a).