Real Estate Math

A Mississippi property's assessed value is $120,000. The homestead exemption reduces the taxable assessment by $7,500. The mill rate is 90 mills. The annual property tax after the exemption is:

A$10,800
B$10,125✓ Correct
C$11,475
D$9,450

Explanation

Taxable assessed value = $120,000 - $7,500 = $112,500. Annual tax = $112,500 × 90 ÷ 1,000 = $112,500 × 0.

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