Course: A property in Missouri is assessed at $200,000 and the tax rate is $3.50 per $100 of assessed value. What is the annual property tax? (EN)
A course dedicated to exploring the concepts related to: A property in Missouri is assessed at $200,000 and the tax rate is $3.50 per $100 of assessed value. What is the annual property tax?.
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Chapter: A property in Missouri is assessed at $200,000 and the tax rate is $3.50 per $100 of assessed value. What is the annual property tax? (EN)
Introduction: Determining Property Tax Liability in Missouri
This chapter addresses the fundamental calculation required to determine annual property tax liability in the state of Missouri. Specifically, we examine a scenario where a property has an assessed value of $200,000, and the governing tax jurisdiction imposes a tax rate of $3.50 per $100 of assessed value.
The calculation of property tax is of significant scientific and practical importance. Scientifically, it represents a quantitative application of proportional reasoning and percentage calculations, essential skills in various STEM fields and economic modeling. Understanding the relationship between assessed value, tax rate, and tax liability allows for the precise quantification of a significant financial obligation for property owners and serves as a crucial input parameter in economic forecasts, urban planning models, and public finance analyses. Practically, accurate property tax assessment and calculation are critical for funding local government services, including education, infrastructure, and public safety. Errors in these calculations can have significant economic consequences for individuals and municipalities alike.
The educational goal of this chapter is to provide a clear and concise methodology for accurately calculating property tax liability given the assessed property value and the stated tax rate. This involves:
Demonstrating the conversion of a tax rate expressed per $100 of assessed value into a usable decimal form.
Applying this converted tax rate to the total assessed value to derive the annual property tax due.
Ensuring comprehension through a worked example and providing a framework adaptable to different assessed values and tax rates within the Missouri context.
