If the equalization factor on a property with assessed value 47,250 changes from 125% to 150% and the tax rate is 25 mills, what is the new tax?

If the equalization factor on a property with assessed value 47,250 changes from 125% to 150% and the tax rate is 25 mills, what is the new tax?

• A. $1,772
• B. $1,771
• C. $1,800
• D. $1,750

Answer: (A)

Understanding how the equalization factor and mill rate determine tax helps here. The equalization factor scales the assessed value to reflect market value for tax purposes, and a mill is $25 per $1,000 of value (0.025 per dollar). With the factor raised to 150%, the equalized value becomes 47,250 × 1.50 = 70,875. The tax is 25 mills, so tax = (70,875 ÷ 1,000) × 25 = 70.875 × 25 = 1,771.875, which rounds to $1,772. So the new tax is $1,772.

Understanding how the equalization factor and mill rate determine tax helps here. The equalization factor scales the assessed value to reflect market value for tax purposes, and a mill is $25 per $1,000 of value (0.025 per dollar).

With the factor raised to 150%, the equalized value becomes 47,250 × 1.50 = 70,875. The tax is 25 mills, so tax = (70,875 ÷ 1,000) × 25 = 70.875 × 25 = 1,771.875, which rounds to $1,772.

So the new tax is $1,772.