Real Estate Math

A Florida property owner receives a tax bill showing an assessed value of $300,000, a homestead exemption of $50,000, and a millage rate of 17.5 mills. What is the annual tax bill?

A$5,250

B$4,375✓ Correct

C$3,937.50

D$6,125

Explanation

Taxable value = $300,000 − $50,000 = $250,000. Annual tax = $250,000 × 17.5 mills = $250,000 × 0.0175 = $4,375. Remember: mills ÷ 1,000 = decimal rate. 17.5 mills = $17.50 per $1,000 of taxable value. $250 × $17.50 = $4,375.

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