A Louisiana home has a fair market value of $325,000 and is assessed at 10% of fair market value. The owner has the standard homestead exemption, which exempts $7,500 of assessed value in this calculation. At 80 mills, what is the annual property tax?
Correct Answer
C) $2,000
Assessed value is $32,500. After the $7,500 assessed-value exemption, taxable assessed value is $25,000. At 80 mills (0.080), tax is $2,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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