Given the Following Information, Calculate the Total Annual Tax Liability

question 26

Multiple Choice

Given the following information, calculate the total annual tax liability of the homeowner. Market value of property: $537,500, Assessed value of property: 60 % of the market value, Exemptions: $2,500, School District Millage Rate: 29.25 mills, County and Township Millage Rate: 5.75 mills.

• A) $7,437.50
• B) $11,200.00
• C) $11,287.50
• D) $188,125.00

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Definitions:

Net Value

The remaining value of an asset after deducting costs or liabilities associated with it.

Tangible Assets

Physical assets that can be touched or seen, such as machinery, buildings, vehicles, and inventory, which have a value and are owned by a business.

Escrow Settlement

A financial arrangement where a third party temporarily holds and regulates payment of the funds required for two parties involved in a given transaction.

Accountant

A professional responsible for managing and examining financial records and ensuring accuracy and compliance with laws.