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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