California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

Assuming that the current assessed value of a property after all exemptions have been applied is $55,000, what is the annual tax on that property?

$550
$5,500
$5500
$55

The correct answer is: $550

After all exemptions have been applied to a property, the assessed value is $55,000. The annual tax on the property is calculated by taking a certain percentage of the assessed value. In this scenario, the correct answer is A, $550, which is 1% of $55,000. Option B, $5,500, is 10% of $55,000 which is too high of a percentage for annual property tax. Option C, $5,500, is the same as option B and therefore also incorrect. Option D, $55, is likely not enough to cover the annual property tax, as it is only 0.1% of $55,000.