A house has a market value of $110,000. The assessed value is 30% of the market value. If the mill levy is 52 mills, what is the yearly tax on the house?

To determine the yearly tax on the house, you first need to calculate the assessed value. The assessed value is given as a percentage of the market value. In this case, the market value is $110,000 and the assessed value is 30% of that.

Calculating the assessed value:

Assessed Value = Market Value × Assessment Rate

Assessed Value = $110,000 × 0.30 = $33,000

Next, to find the property tax, you need to apply the mill levy to the assessed value. A mill is one-thousandth of a dollar, so a mill levy of 52 mills means that for every $1,000 of assessed value, $52 in taxes is owed.

Calculating the yearly tax:

Yearly Tax = (Assessed Value / 1,000) × Mill Levy

Yearly Tax = ($33,000 / 1,000) × 52 = $33 × 52 = $1,716

Thus, the yearly tax on the house is $1,716. This calculation shows clearly how the assessed value is derived from the market value and how the mill levy is used to compute the taxes owed based on that assessed value.