Using a millage rate of 2917 and a homestead exemption of 59

Using a millage rate of 29.17 and a homestead exemption of $59,000 (for primary residence), determine the tax liability for each of the following individuals:

Aarav whose primary residence is valued at $165,000.

Mia who owns a rental home (non-primary residence) valued at $20,000.

Harper who owns a primary residence valued at $2,456,000.

Solution

Solution: mill rate = 29.17, homestead exemption = $59,000

Tax liability/property tax payable = (value of property- hometead exemption(if applicable))*(mill rate/100)

1) For Aarav, tax liability = (165000 - 59000)*29.17/100 = $30,920.2

2) For Mia, tax liability = (20000 - 0)*29.17/100 = $5,834 (since, it\'s a non-primary residence, homestead exemption isn\'t applicable here, thus it is put equal to 0)

3) For Harper, tax liabilty = (2456000 - 59000)*29.17/100 = $699,204.9