A piece of property valued at $2,000,000 is assessed for property tax purposes at 70% of its value. If the property tax is $20.00 on each $1,000.00 of assessed value, what is the amount of tax?
A) $23,700.00
B) $4,000.00
C) $28,000.00
D) $12,000.00
E) $40,000.00

Question

Quizplus · Accepted Answer

The assessed value is 70% of $2,000,000, which is $1,400,000. The tax rate is $20 per $1,000 of assessed value, so the tax is ($1,400,000 / $1,000) * $20 = $28,000.

A Piece of Property Valued at $2,000,000 Is Assessed for Property