Joe's Arizona City home has a market value of $150,000. What is Joe's assessed value?

To determine the assessed value for property taxation in Arizona, it’s important to understand the state's assessment ratio. In Arizona, residential properties are typically assessed at 10% of their market value.

Given that Joe's home has a market value of $150,000, the assessed value would be calculated as follows:

Assessed Value = Market Value × Assessment Ratio Assessed Value = $150,000 × 0.10 Assessed Value = $15,000

This calculation shows that the correct assessed value of Joe's home is indeed $15,000. The assessed value is crucial for taxation purposes, as it is the figure used by local governments to determine property taxes owed by homeowners. Understanding this concept is vital for those preparing for the real estate exam, as it illustrates how market values and assessed values interact within the taxation system in Arizona.