Presentation on theme: "House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?"— Presentation transcript:
House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?
Lesson Objective Calculate the assessed value and real estate taxes for a home. Content Vocabulary real estate taxes Taxes collected by the city or county from homeowners to pay for roads, parks, schools, government offices, and other services. assessed value tax rate market value rate of assessment assessed value The dollar value a tax assessor assigns to a property for taxation purposes. tax rate The percent of income, sales, or property value collected in taxes. The tax rate on property is sometimes expressed in mills per dollar of the propertys assessed value. market value The price at which a property can be bought or sold. rate of assessment The percent of a propertys market value that is taxed.
The Fulton County tax assessor determined that the market value of Courtland Farm is $340,000.00. The rate of assessment in Fulton County is 40 percent of market value. The tax rate is 50.73 mills. What is the real estate tax on Courtland Farm? Example 1
Find the assessed value. Market Value × Rate of Assessment $340,000.00 × 40% = $136,000.00 Example 1 Answer: Step 1
Express the tax rate as a decimal. 50.73 mills ÷ 1,000.00 = 0.05073 Example 1 Answer: Step 2
Find the real estate tax. Tax Rate × Assessed Value 0.05073 × 136,000.00 = $6,899.28 Example 1 Answer: Step 3
A townhouses market value is $163,000. The rate of assessment is 36 percent. The tax rate is $75 per $1,000. What is the annual real estate tax? Practice 1