You are looking at comparable houses with the same asking prices in neighboring towns. The mill rate in the first town is 20 mills. The mill rate in the second town is 37 mills. Both houses are assessed at $175,000. Mill rate is the tax rate that is applied to the assessed value of a real estate property by a municipality. Your tax is calculated by multiplying the mill rate by the assessed value of a property and dividing by 1,000. What is the dollar difference in annual property taxes based on mill rate between the two towns?

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2022-04-04T10:17:19+02:00

The dollar difference in annual property taxes based on mill rate between the two towns is $2,975.

First step is to calculate for first town

First town=Mill rate÷1,000×Property assessed value

First town=20 mills÷1000×$175,000

First town=$3,500

Second step is to calculate for second town

Second town=Mill rate÷1,000×Property assessed value

Second town=37mills÷1000×$175,000

Second town=$6,475

Third step is to calulate the difference

Difference=$6,475-$3,500

Difference=$2,975

Inconclusion the dollar difference in annual property taxes based on mill rate between the two towns is $2,975.

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