If a homeowner pays $2,834.58 in property taxes for a property valued at $55,580, what is the local property tax rate?

• A. 0.045
• B. 0.051
• C. 0.055
• D. 0.060

Answer: (B)

To determine the local property tax rate, you need to divide the amount of property taxes paid by the assessed value of the property. The formula for calculating the property tax rate is as follows:

Property Tax Rate = (Property Taxes Paid / Property Value)

In this scenario, the homeowner pays $2,834.58 in property taxes for a property valued at $55,580. Using the formula, you would calculate:

Property Tax Rate = $2,834.58 / $55,580

Performing the division gives you approximately 0.051. This decimal can be converted into a percentage by multiplying by 100, resulting in a property tax rate of 5.1%.

Thus, the correct answer represents the local property tax rate, accurately reflecting the relationship between the property taxes paid and the property’s assessed value. This understanding is crucial for homeowners to manage their taxes effectively and comprehend their obligations.