A single-family residential property in Mississippi has a market value of $190,000. The local mill rate is 20 mills. Using Mississippi's residential assessment ratio of 10%, what is the annual property tax?
Correct Answer
B) $380
In Mississippi, single-family residential properties are assessed at 10% of their true (market) value under the state's tiered assessment ratio system. Step 1: Calculate assessed value — $190,000 × 10% = $19,000. Step 2: Apply the mill rate — one mill equals $1 per $1,000 of assessed value, so 20 mills = $0.020 per dollar. Step 3: Calculate tax — $19,000 × 0.020 = $380. Note: Mississippi uses different assessment ratios for other property classes (e.g., 15% for commercial property), making it important to identify the property type before calculating taxes.
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Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
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