A homestead property in Orange County has an assessed value of $400,000. The homestead exemption reduces the taxable value by $50,000, and the county tax rate is 8.5 mills. How much will the owner save in property taxes due to the homestead exemption?
Correct Answer
B) $425
Correct: $50,000 × 0.0085 (8.5 mills) = $425 in tax savings. A is incorrect calculation ($50,000 × 0.0065). C is incorrect calculation ($50,000 × 0.01). D is incorrect calculation ($50,000 × 0.0125).
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Related Topics & Key Terms
Key Terms:
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
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Previous Question
Lisa, a widow with two minor children, dies owning homestead property in Tampa. Her will leaves the property to her sister instead of her children. What happens to the property under Florida law?
Next Question
Mark owns two properties in Florida: a condo in Miami where he lives 8 months per year, and a house in Gainesville where he lives 4 months per year while teaching at the university. He wants to claim homestead exemption on both properties. What is the result?