1. Real Estate Taxes pp. 355-356 10-5 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 2 of 18 10-5 real estate taxes (p.355) Taxes collect by the city or county from homeowners to pay for roads, parks, and other public services. assessed value (p. 355) The dollar value assigned to property by a tax assessor for tax purposes. Key Words to Know

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 3 of 18 10-5 tax rate (p. 355) The percentage of property value collected in taxes, sometimes expressed in mills per dollar. market value (p. 355) The price at which a house can be bought or sold. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 4 of 18 10-5 rate of assessment (p. 355) Percent of the market value of property that is taxed. Key Words to Know

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 5 of 18 10-5 Assessed Value = Market Value × Rate of Assessment Formula 1

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 6 of 18 10-5 Real Estate Tax = Tax Rate × Assessed Value Formula 2

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 7 of 18 10-5 Mill = $0.001 or Mill = $1.00 ÷ 1,000 Formula 3

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 8 of 18 10-5 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

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 9 of 18 10-5 Find the assessed value. Market Value × Rate of Assessment $340,000.00 × 40% = $136,000.00 Example 1 Answer: Step 1

10. Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 10 of 18 10-5 Express the tax rate as a decimal. 50.73 mills ÷ 1,000.00 = 0.05073 Example 1 Answer: Step 2

11. Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 10-5, Slide 11 of 18 10-5 Find the real estate tax. Tax Rate × Assessed Value 0.05073 × 136,000.00 = $6,899.28 Example 1 Answer: Step 3

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