In: Finance
A property owner who owes 6 mils in school taxes, 12 mils in
city taxes, and 8 mils in county taxes and who qualifies for a
$10,000 homestead exemption would owe how much in property tax on a
property assessed at $56,000?
In making calculations of property taxes 1 mils = 1$ of tax for every $1,000 value.
Hence, the calculation is as follows:
Value of property : $56,000
Less ; Homestead exemption : $10,000
Net value to be taxed: $46,000
Tax is levied on value of every $1,000
Hence, $46,000/ $1,000
=46
as every mils is $1 in value,
School taxes(6 * $1 = $6), so taxes on value of property is $6 * 46 = $276
City taxes: (12 * $1 = $12) $12 * 46 = $552
County taxes: (8 * $1 = $8) $8 * 46 = $368
Total taxes to be paid = $276 + $552 + $368 = $1,196