A Tampa property has an assessed value of $450,000. The homestead exemption reduces the taxable value by $50,000. If the total millage rate is 18.5 mills, what is the annual ad valorem tax?
Correct Answer
A) $7,400
The correct answer is A. Taxable value = $450,000 - $50,000 = $400,000. Tax = ($400,000 ÷ 1,000) × 18.5 mills = 400 × $18.50 = $7,400. B is incorrect because it uses the full assessed value without subtracting the homestead exemption. C is incorrect due to miscalculation of the millage application. D is incorrect because it applies an incorrect millage rate calculation.
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