If a couple purchased a rental house for $195,000 with an assessed value of $180,000, what is the monthly tax contribution at a rate of $1.50 per $100?

To determine the monthly tax contribution, you first need to calculate the yearly tax based on the assessed value of the property, which is $180,000, at a tax rate of $1.50 per $100 of assessed value.

The calculation for the annual property tax takes these steps:

1. Convert the assessed value into hundreds: To find out how many hundreds are contained in the assessed value, divide $180,000 by $100. This gives you 1,800 (since $180,000 ÷ $100 = 1,800).

2. Multiply by the tax rate: Now, multiply the number of hundreds (1,800) by the tax rate of $1.50. So, 1,800 x $1.50 = $2,700. This amount ($2,700) represents the total annual property tax.

3. Calculate the monthly tax contribution: To find out how much is owed monthly, divide the annual tax by 12 months. Therefore, $2,700 ÷ 12 = $225.

Thus, the monthly tax contribution for the property is $225. This calculation reflects how property taxes are assessed based on the property's assessed value and the applicable tax