Question

Vervet County levies a real property tax based on the following schedule.
Rate Assessed value
3% $-0- to $250,000
+ 1% $250,001 and above
Bilex Inc. owns real property valued at $629,800. Compute Bilex's tax on this property.
A) $13,798
B) $7,500
C) $6,298
D) None of the choices are correct.

Answer 1

Answer:

D. None of the above

Explanation:

Computation for the tax on this property

Property Tax = [(3% × $250,000] + [1% ×($629,800-$250,000)]

Property Tax= $7,500+ $3,798

Property Tax= $11,298

Therefore the tax on this property will be $11,298 which means that the choices listed above are not correct.