Mathematics

Jakobe Chambers

23 July, 10:11

You are looking at comparable houses with the same asking prices in neighboring towns. The mill rate in the first town is 20 mills. The mill rate in the second town is 37 mills. Both houses are assessed at $175,000. Mill rate is the tax rate that is applied to the assessed value of a real estate property by a municipality. Your tax is calculated by multiplying the mill rate by the assessed value of a property and dividing by 1,000. What is the dollar difference in annual property taxes based on mill rate between the two towns? a) $1,750 b) $6,475 c) $2,975 d) $3,500