Problema Solution
The Davis family has a house valued at school$160, 000. They must pay property taxes on 85 percent of the value of the house at a rate of 1.2 percent. How much is their property tax?
Answer provided by our tutors
Vlaue of house = $ 160000
Property tax to be paid on 85% of value of the house.
So Taxable Value of house on which property tax is to be paid = 160000 * 85% = $136000
Property tax rate = 1.2%
Property tax Payable = Taxable value of property * Property Tax rate
= 136000 * 1.20%
= $ 1632.00
Hence property tax payable is $ 1632.00