in county a, property is assessed at 30% of market value, with a tax rate of 45.2 mills. in county b…

in county a, property is assessed at 30% of market value, with a tax rate of 45.2 mills. in county b, property is assessed at 16% of market value, with a tax rate of 48.7 mills. a company is trying to decide where to place a building with a fair market value of $93,000. which county would charge the lower property tax? find the difference. which county would charge the lower property tax? county a county b what is the annual savings? $ (round to the nearest cent.)
Answer
Explanation:
Step1: Calculate property - tax in County A
First, find the assessed value in County A. The assessed - value is 30% of the market value. The market value of the building is $V = 93000$. So the assessed value $A_{1}=0.3\times93000 = 27900$. The tax rate is 45.2 mills (1 mill = 0.001). So the property tax in County A, $T_{1}=A_{1}\times0.0452=27900\times0.0452 = 1260.08$.
Step2: Calculate property - tax in County B
Find the assessed value in County B. The assessed - value is 16% of the market value. So the assessed value $A_{2}=0.16\times93000 = 14880$. The tax rate is 48.7 mills. So the property tax in County B, $T_{2}=A_{2}\times0.0487=14880\times0.0487 = 724.66$.
Step3: Calculate the annual savings
The annual savings $S=T_{1}-T_{2}$. Substitute $T_{1}=1260.08$ and $T_{2}=724.66$ into the formula. So $S = 1260.08−724.66=535.42$.
Answer:
535.42