Question

A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability?
A: $23,850
B: $1,590
C: $2,385
D: $15,900

Answer 1

Answer:

C: $2,385

Explanation:

A tax liability by definition is basically known as debt owed by a corporation or an individual to a tax authority like the Internal Revenue Service(IRS). To solve this question, set it up like this;

If $1,000 pays 4.5mills in taxable value, then 530,000 would pay how much?

If $1000 = 4.5

then tax liability on $530,000 would be= (530,000 *4.5) / 1,000

= 2,385,000/ 1000

= $2,385