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soldi70 [24.7K]
3 years ago
7

Property taxes are based on an assessed value of $132,000 and the tax rate is 8.5 mills. The property closes on Jun 14. On a bas

is of the banker’s calendar, the seller owes how much in taxes?
Mathematics
1 answer:
defon3 years ago
6 0

Answer:

$132,000 X .0085 = $1,122 / 360 = $3.1166 X 164 = $511.13

One mill is one dollar per $1,000 dollars of assessed value.

In our case 8.5 mills equivalent to 0.0085.

So to get the assessed value for one day

we will get

$132,000 X .0085 = $1,122 / 360 = $3.1166

Now we have the value for one day,

For June 14, we will calculate the days from January 1st to date

total days are 164.  i.e. 5*30+14 = 164

Finally, the seller owes

$3.1166 * 164 = 511.13

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