CH 15

Question 1

What is Property Taxes?

Answer 1

Taxes that are levied according to the value of ones property

Question 2

What are the Three Steps to determine the amount of tax to collect each year

Answer 2

1. The Local budget is prepared
2. All taxable property is appraised
3. The amount to be collected among the taxable properties in the district is allocated

Question 3

The school needs $8m from property taxes, the assessed value of property with the district is $200m. What is the $ amount that the school needs of every dollar of assessed valuation?

Answer 3

$0.04
8,000,000/200,000,000 = 0.04

Question 4

how much mills is $0.04 tax rate?

Answer 4

40 mills
One mill = 1/10 of a cent - $0.01 = 10 mills

Question 5

What is the annual taxes on this problem?

Assessed Value of $20,250

our mill levy is 80 mills

Answer 5

20,250 * 0.080 = $1,620

Question 6

How much of a Tax Exclusion does a marries couple get?

Answer 6

$500,000 gain

Question 7

How much of a Tax Exclusion does a single person get?

Answer 7

$250,000 gain

Question 8

The Internal Revenue Code provides for the deductibility of state and local real estate taxes up to what ?

Answer 8

$10,000

Question 9

The Internal Revenue Code provides for the deductibility of interest paid to…

Answer 9

Finance the purchase of a home

On improvement district bonds

On Points for new loans