An Oklahoma homeowner has a property with an assessed value of $180,000. The county millage rate is 80 mills. The homeowner qualifies for Oklahoma's standard ad valorem homestead exemption of $1,000 off the assessed value. What is the homeowner's annual property tax bill?

Correct Answer

A) $14,320

Step 1: Apply the homestead exemption. $180,000 − $1,000 = $179,000 net assessed value. Step 2: Convert mills to a decimal. 80 mills = 80 ÷ 1,000 = 0.080. Step 3: Calculate the tax. $179,000 × 0.080 = $14,320. Wait — this gives $14,320. However, in Oklahoma, ad valorem taxes are applied to assessed value which is typically a percentage of fair market value. Re-examining: if the assessed value given IS the taxable assessed value after any assessment ratio, then: $179,000 × 0.080 = $14,320 seems too high. Reconsidering the standard calculation: 80 mills on $179,000 = $179,000 × (80/1000) = $179,000 × 0.08 = $14,320. This matches option A, not C. Correcting: The question intends the millage to apply per $1,000 of assessed value, which is the standard definition. $179,000 ÷ 1,000 = 179 units × 80 = $14,320. This still yields $14,320. To yield $1,432, the assessed value would need to be $17,900. The question as written with $180,000 assessed value and 80 mills yields $14,320 after exemption. Adjusting the correct answer to A: $179,000 × (80/1,000) = $14,320.