Question

The Nelsons own a home whose market value is $132,000. Their municipality taxes at 70% and the rate is 80 mills or $80 per thousand. What will the Nelsons pay in taxes? $ a0

Answer 1

Answer: 7392

Step-by-step explanation:

70% x 132,000 = 92400

92.4 x 80 = 7392

Answer 2

To answer this question you will need to calculate what 70% of the value of the house is because this is what the tax is based on.

0.7 x $132000 = $92400 tax basis

They pay $80 per $1000 in tax basis, so $92400 would be 92.4 groups of $1000.

$80 x 92.4 = $7424 in taxes based on an 80 mills tax rate.