In the example, what is the annual property tax?

• A. 3,000
• B. 5,000
• C. 4,000
• D. 6,000

Answer: (C)

Property tax is the annual charge a property owner pays to fund local services, and the amount is determined by two pieces: the property's assessed value and the local tax rate. In Washington, tax rates are expressed as dollars per thousand of assessed value, so you multiply the assessed value by the rate per thousand (or equivalently multiply the rate by 1,000 and apply it to the value), then adjust for any exemptions or special assessments that may apply.

In the example, the numbers shown lead to an annual tax of four thousand dollars. That happens when the assessed value and the mill rate combine to produce that total—for instance, an assessed value of two hundred thousand with a rate of twenty dollars per thousand yields 200,000 × 20/1,000 = 4,000. The other answer choices would require different value or rate data, so they don’t match the calculation given.