Question

Given the following information, compute the effective tax rate for the particular piece of property in percentage terms. Market value of property: $325,000, Assessed value of property: $250,000, Exemptions: $50,000, Taxes paid: $5,363.

Answer 1

To calculate the effective tax rate for the property, divide the taxes paid by the market value of the property and multiply by 100%. The effective tax rate for this property is 1.65%.

Step-by-step explanation:

To compute the effective tax rate for the property, we need to calculate the amount of taxes paid as a percentage of the market value of the property. The formula to calculate the effective tax rate is:

Effective Tax Rate = (Taxes paid / Market value of property) * 100%

In this case, the taxes paid were $5,363 and the market value of the property is $325,000. Plugging these values into the formula, we get:

Effective Tax Rate = (5363 / 325000) * 100% = 1.65%

The effective tax rate for the particular piece of property is 1.65%.

Answer 2

1.7%

Step-by-step explanation:

Given: Market value of property is $325000

Assessed value of property is $250000.

Exemption: $50000

Tax paid: $5363.

Now, finding the effective tax rate for piece of property.

Effective tax rate=
`(tax\ paid\ on\ property)/(Market\ value\ of\ property) * 100`

⇒ Effective tax rate=
`(5363)/(325000) * 100`

⇒ Effective tax rate=
`1.65\% \approx 1.7\%`

∴ The effective tax rate for a piece of property is 1.7%