New Jersey Salesperson State Practice Exam

What would be the annual property tax on a house valued at $72,000 if properties are assessed at 50% of their value with a tax rate of $6 per $100 mill rate of 60?

$600

$1200

$2160

To determine the annual property tax on a house valued at $72,000, we first need to find the assessed value of the property. Since properties are assessed at 50% of their value, we calculate the assessed value as follows:

Assessed Value = Property Value × Assessment Rate

Assessed Value = $72,000 × 50%

Assessed Value = $72,000 × 0.5 = $36,000

Next, we need to apply the tax rate to the assessed value. The tax rate given is $6 per $100 of assessed value. First, we convert the assessed value to a per-$100 value to facilitate the calculation:

Value in $100 = Assessed Value ÷ 100

Value in $100 = $36,000 ÷ 100 = 360

Now, we multiply the number of hundreds by the tax rate:

Annual Property Tax = Value in $100 × Tax Rate

Annual Property Tax = 360 × $6 = $2160

Therefore, the annual property tax on the house would be $2160. This calculation demonstrates the correct application of property assessment and taxation principles in New Jersey, leading to this specific tax amount based on the given valuation and rate

$4320.19