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

Homestead exemption is available only for primary residence and not for rental properties, therefore only Aarav and Harper qualify for this exemption.

Millage rate of 29.17 means tax of 29.17 on every 1000$ of tax assessed value.

So tax liability for each of the individuals:

1. Aarav

Primary residence value 165000$

Less: homestead exemption. (59000)$

Tax assessed value 106000$

Property tax liability = ( 106000*29.17)/1000= 3092.02$

2. Mia

Value of rental property 20,000$

Less: exemption 0

Tax assessed value 20,000$

Property tax 583.40$

3. Harper

Primary residence value = 2456000$

Less: exemption = (59000)

Tax assessed value = 23,97,000$

Property tax : (2397000*29.17)/1000= 69920. 49$