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

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