Property Ownership

The Louisiana Homestead Exemption constitutional provision (Art. VII, Sec. 20) exempts from taxation the first $7,500 of assessed value. If the homestead is worth $250,000 and assessed at 10%, the tax exemption saves the homeowner:

AThe full property tax
BThe tax that would have been due on $7,500 of assessed value✓ Correct
CHalf the annual property tax
DThe tax that would have been due on $75,000 of market value

Explanation

The exemption applies to $7,500 of assessed value (not market value). The tax savings = $7,500 × local millage rate. At 80 mills, the savings = $7,500 × 0.080 = $600 per year.

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