Wisconsin Real Estate Sales Practice Exam

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Prepare for the Wisconsin Real Estate Sales Exam. Utilize flashcards and multiple choice questions with detailed explanations. Achieve success on your test!

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A property has a market value of $136,000 and is assessed at 90% of value. The mill rate in the community is 20. What is the annual tax bill?

$2,272
$2,448
$2,800
$3,000

The correct answer is: $2,448

To calculate the annual tax bill, first, determine the assessed value of the property. The assessed value is a percentage of the market value; in this case, it is assessed at 90% of the market value of $136,000. Calculating the assessed value involves multiplying the market value by the assessment ratio: Assessed Value = Market Value x Assessment Ratio Assessed Value = $136,000 x 0.90 = $122,400 Next, to compute the property tax, the assessed value is multiplied by the mill rate. The mill rate indicates the amount of tax per $1,000 of assessed value. When dealing with mill rates, it is essential to convert the rate into a dollar amount for the assessed value: Property Tax = (Assessed Value / 1,000) x Mill Rate Property Tax = ($122,400 / 1,000) x 20 Property Tax = $122.4 x 20 = $2,448 Thus, the annual tax bill for the property is $2,448. This calculation reflects the direct relationship between the assessed value and the mill rate, which are essential components in determining property taxes.