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.$11,287.50 c. $11,200.00 d.$188,125.00

The total annual tax liability of the homeowner market value of property is $11,200.00. The right answer is c

Explanation:

According to the given data we have the following:

Market value of property = $5,37,500

Assessed value of property = 60% of the market value

Hence, Assessed value of property = $5,37,500*60% = $3,22,500

Exemption: $2500

Therefore, Assessed value = $3,22,500-$2,500 = $3,20,000

Schol district milleage rate = 29.25Mills

County and township milleage = 5.75 Mills

Total rate of Mills = 29.25+5.75=35 mills

Therefore, to calculate the total annual tax liability of the homeowner market value of property we would have to use the following formula:

Property tax amount = (Assessed value * Rate of mills/1,000,000) * 1,000

Property tax amount = ($320,000*35/1,000,000) * 1,000

Property tax amount = $11,200.00

The total annual tax liability of the homeowner market value of property is $11,200.00