Marcus owns a home in Hattiesburg, Mississippi with a true (appraised) value of $250,000. He qualifies for and has applied the Mississippi homestead exemption. The local millage rate is 80 mills. What is Marcus's annual ad valorem property tax bill?

Correct Answer

A) $600

Step 1 — Calculate assessed value: $250,000 true value × 10% residential assessment ratio = $25,000 assessed value. Step 2 — Apply homestead exemption: $25,000 − $7,500 = $17,500 net taxable assessed value. Step 3 — Convert millage rate: 80 mills = 80 ÷ 1,000 = $0.080 per dollar of assessed value. Step 4 — Calculate tax: $17,500 × $0.080 = $1,400. Wait — let me recheck: $17,500 × 0.080 = $1,400. That yields $1,400, which is option B. Re-examining: $17,500 × 0.08 = $1,400. The correct answer is B. [Self-correction: The correct answer is B = $1,400.] Correcting the answer field — the correct answer should be B. Under Miss. Code Ann. §27-33-1 et seq. and §27-35-50: assessed value = $250,000 × 10% = $25,000; after homestead exemption = $25,000 − $7,500 = $17,500; tax = $17,500 × (80 ÷ 1,000) = $17,500 × 0.08 = $1,400.