A residential property is assessed for tax purposes at 40% of its market value. The residential property tax is 3 1/3% of the assessed value and the tax is $1200.

Question

A residential property is assessed for tax purposes at 40% of its market value. The residential property tax is 3 1/3% of the assessed value and the tax is $1200.
a)What is the assessed value of the property?
b) What is the market value of the property?

Henry · Answer

a 3 1/3% = 3.33333%/100% = 0.033333 = % rate expressed as a decimal. 0.033333A = $1200. A = $36,000. = Assessed value. b. 0.4M = $36000. M = $90,000. = Market value.