18 - Taxes Affecting Real Estate Flashcards
The estimate of value that is determined by the county property appraiser is called ______ which by law must be based on the concept of just value.
Assessed value
Each taxing authority must first do what to forecast the amount of revenue that is needed to fund operations for the coming year?
Establish a budget
Which is the first step in protesting a tax assessment?
Requesting an informal conference with the county property appraiser.
Which properties are immune and, therefore, are not assessed, or subject to, taxation when used to provide government services?
Property owned by local, state, and federal government.
Qualifying properties are entitled to a homestead tax exemption up to _______ of assessed value.
$50,000
To qualify for the homestead tax exemption, one must own the property and be a resident of the state on or before _______, and must file for the exemption with the county property appraiser but between ________ and ________ of the following year.
January 1, January 1, March 1
The following individuals are eligible for additional exemptions in the amount of $500.
Widows and widowers who have not remarried and blind person
Individuals eligible for additional exemptions in the amount of $5000 are
Veterans of military service with at least a 10% military service-related disability
Any individual, veteran or not, who is totally and permanently disabled is entitled to _____% exemption from payment of property taxes
100
What percentage of the assessed value of homestead property is limited as to the amount of increase the county property appraiser may assign to the lesser according to the consumer price index (CPI)?
3%
_________ are tax levies which are used to pay for specific public improvements that add value to the property.
Special assessments
If the property owner does not pay the property taxes before April 1 of the year following the assessment, the tax becomes ____________.
Delinquent
_________ are deductible as an expense when calculating federal income taxes for all homeowners who file itemized returns.
real estate property tax deduction
For tax years beginning after 1987, taxpayers can deduct _______ paid for acquiring, constructing, or substantially improving a principal or secondary residence up to $1,000,000 of acquisition indebtedness.
Mortgage interest paid
Taxpayers can deduct interest paid on amounts up to $100,000 of home equity indebtedness is in addition to __________.
interest paid on acquisition indebtedness
The taxpayer here relief act of 1997 establish new tax treatment for homeowners when the sale of a principal residence occurred subsequent to May 6, 1997. Under the 1997 tax act, married couples, who have owned and use the property as a principal residence for at least two of the previous five years prior to sale, may exclude up to $500,000 of gain on the sale from tax taxation
Sale of principal residence
What is used to pay for sidewalks, sewer and other public improvements that benefit the property owner?
Special assessments
To which organization is real estate tax most important?
Local government
Which laws limit the assessed value on agricultural land in or near urban areas?
The Greenbelt laws
Property owners who pay their real estate tax bill in November are entitled to which discount?
4%
November 4%
December 3%
January 2%
February 1%
Owners of a homestead property located outside the city limits would be required to pay property taxes levied by whom?
By the county and school board
How is 10 Mills expressed as a decimal?
.010
Which statement best describes the interest that is paid on text certificates?
It is based on the lowest bid received
