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
B) $1,400
Step 1: Calculate assessed value: $250,000 true value x 10% residential assessment ratio = $25,000 assessed value. Step 2: Apply the Mississippi homestead exemption: $25,000 - $7,500 = $17,500 net taxable assessed value. Step 3: Convert the millage rate: 80 mills = 80 / 1,000 = 0.080. Step 4: Calculate the tax: $17,500 x 0.080 = $1,400. The correct answer is B.
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