New Jersey Real Estate Practice Exam Practice Question
A property has a market value of $75,000 and is assessed at 20% of value. The tax rate is $6.50 per $100 of value. What are the real estate taxes for this property?
Correct Answer: B
Rationale: To determine the real estate taxes, first calculate the assessed value of the property by taking 20% of the market value:
\[ 0.20 \times 75,000 = 15,000 \]
Next, convert the tax rate into a per-dollar amount:
\[ 6.50 \text{ per } 100 = 0.065 \text{ per dollar} \]
Now, multiply the assessed value by the tax rate:
\[ 15,000 \times 0.065 = 975 \]
Option A ($487) is incorrect as it underestimates the tax amount. Option C ($1,500) and Option D ($4,875) are also incorrect, as they miscalculate the assessed value or apply the tax rate incorrectly. Thus, the correct tax amount is $975.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now