The tax rate on Jerome Jame's $112,000 vacation home is 25 mills. The property is assessed at full value. How much will Jerome pay in taxes this year? A. $780 B. $7,800 C. $2,800 D. $28,00?
Hello Diana. The Mills rate represents a figure amount per $1000 of the assessed value of the property (mills is derived from the Latin word "millesium" which means thousandth). The assessed value of the property is $112,000. The tax rate is 25 mills which means $25 per $1000. So the tax due is 25*112=$2800. Alternatively, one can think of 25 mills as a tax rate of 2.5% (25/1000 = 2.5/100). So now you just need to calculate 2.5% of $112,000 which is $2800. I hope this helps. Best wishes, Amir Saei
Get an answer in 5 minutes from expert tutors at Oxford, Cambridge, Imperial and more.