Multiple Choice Identify the letter of the choice that best
completes the statement or answers the question.


1.

Yee lives in an area where the property tax rate is $17.84 per $100 of assessed
value. The office building Yee owns is assessed at $74,000. Yee appeals his taxes and is able to
secure a reduction of $5,000 in the assessed value. Which of the following amounts will be Yee's
approximate property taxes this year?
a.  $0  c.  $892  b.  $12,310  d.  $1,231 


2.

Tim's house has a market value of $86,500 and is assessed at 30 percent of
the market value. If the tax rate in the community is 65 mills, what is the quarterly tax?
a.  $422  c.  $1,266  b.  $456  d.  $1,687 


3.

In this area properties are assessed at 44% of property paid $896 in taxes and
the rate is $9 per $1,000 of assessed valuation, what is the market value of the property?
a.  $99,556  c.  $245,655  b.  $186,677  d.  $226,263 


4.

Broker Uhi has listed a 2,400 square foot house that has been appraised at $54
per square foot. The lot has been appraised for $30,000 and properties are assessed at 30 percent.
What is the assessed value of the property?
a.  $159,600  c.  $47,880  b.  $ 88,400  d.  $45,980 


5.

Gene Nome's home has a market value of $180,000 and is assessed at 45
percent of market value. If the tax rate in his community is $3.60 per $100 of assessed value, what
is his annual tax?
a.  $2,916  c.  $6,480  b.  $1,964  d.  $2,196 


6.

Mickey Raft bought a house on September 1 and has interest expense of $3,984 for
that year. If Raft's marginal tax rate is 30%, what is his savings on his federal income tax
caused by the interest deduction?
a.  $2,788.80  c.  $1,195.20  b.  $1,890.50  d.  $0 


7.

Property tax rates are sometimes quoted as mill rates. What is the decimal
equivalent of one mill?


8.

If the tax rate in a community increased from $0.046 to $0.059 per dollar how
much additional tax would be paid on a house assessed at $135,600?
a.  $1,654.45  c.  $1,762.80  b.  $1,856.45  d.  $1.954.68 


9.

If the tax rate in a community is $3.20 per hundred of assessed value, what is
the quarterly tax on a home valued at $124,000 and assessed at 45%?
a.  $446.40  c.  $1,785.60  b.  $555.60  d.  $1,845.40 


10.

A property owner has a tax bill of $3,456 and his
neighbors tax bill is $2,875. If the millage in the community is 65, what are the assessed values of
the two properties?
a.  $22,464 and $18,688  c.  $55,330 and $42,340  b.  $53,169 and $44,231  d.  $32,432
and$24,654 


11.

The true cash value of a property as determined
by the local tax assessor is $180,900. If the tax levy is 84 mills and property in this jurisdiction
is assessed at 29% of true cash value, what are the annual taxes?
a.  $52,461  c.  $4,407  b.  $44,067  d.  $4,704 


12.

Taxes on a property are $4,200 and the tax rate
is 85 mills. What is the assessed value?
a.  $49,412  c.  $51,214  b.  $50,412  d.  $65,341 


13.

Tom pays $545 each year in property tax on his property. If the tax rate in his
community is $4 per $1,000 of assessed valuation and property is assessed at 45% of market value,
what is the market value of his property?
a.  $136,250  c.  $106,000  b.  $302,778  d.  $246,000 


14.

In his community property taxes are paid in advance for the year running January
1December 31 and the buyer is responsible for the day of settlement. Using a 360day year,
and JoeLJS taxes for the year are $12,500, how much will he get back at closing if the property sells
on June 7?
a.  $5,417  c.  $7,083  b.  $3,456  d.  $6,806 
