Question

"A property has been assessed at $40,000. The city tax rate is 10 mills, the county tax rate is 9 mills, and the school board levy is 8 mills. The owner has qualified for and received a homestead tax exemption. How much will the owner save from his county taxes as a result of the homestead tax exemption?"

Answer 1

Answer:

Amount saved by the owner is $225.

Explanation:

given,

the property has been assessed = $40,000

the city tax rate = 10 mills = 0.001

country tax rate = 9 mills = 0.009

school board levy = 9 mills = 0.008

owner gets homestead tax exemption of = ?

Homestead tax exemption is used to same money from paying tax on their property every year.

homestead tax exemption given is  $25,000

Money saved by owner = $25,000 homestead exemption × county tax rate

                                       = $25000 × 0.009

                                       = $ 225

Amount saved by the owner is $225.