New York Real Estate Institute (NYREI) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

If a property is appraised at $150,000 and assessed at 35% value, what would be the annual tax bill if the mills total is 80?

3,000

4,200

To determine the annual tax bill, we start with the appraised value of the property, which is $150,000. Since the property is assessed at a value of 35%, we first need to calculate the assessed value.

The assessed value is obtained by multiplying the appraised value by the assessment percentage:

Assessed Value = Appraised Value × Assessment Percentage

Assessed Value = $150,000 × 0.35

Assessed Value = $52,500.

Next, we convert the assessed value into mills. Mills are a way of expressing the property tax rate where one mill equals one-tenth of a cent, or $1 of tax for every $1,000 of assessed value. To find the annual tax bill, we take the assessed value and multiply it by the mill rate, expressed in terms of $1,000.

The total mills given is 80. This means for every $1,000 of assessed value, the property tax is $80. To calculate the tax bill, we perform the following steps:

1. Convert the assessed value into a unit of $1,000:

$52,500 ÷ $1,000 = 52.5.

2. Multiply the result by the mill

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5,000

6,500

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