Ch 15 Flashcards
Define Entitlement
The right to do something on your property
What do Property Taxes fund?
School, Fire department, Police, Local Welfare Programs
Define Ad Valorem Taxes
Taxes charged according to the value of a property
What is the process of taxation
- Budget and Appropriation
- Appraisal and Assessment
- Tax Rate Calculation
4 Applying the Rate
What is the tax rate calculation equation
total budget / total assessment = tax rate
What is the equation to apply the tax rate?
Tax rate * Individual Assessed Value = Individual Property Taxes
What is the basic equation for finding market value?
Real Estate + Buildings (improvements) = Market Value
Market Value * Statutory reduction = Total Taxable Value
Total Taxable Value * Tax Rate = Total Taxes
What happens if you do not pay your taxes?
The property is confiscated and sold to the highest bidder
What properties are exempt from property tax?
Government-owned property tax, Property owned by churches and charitable organizations, Special Exceptions Designed to Attract Businesses
What is the largest source of income in America for local government programs and services?
Property Taxes
Are agent’s liable for tax advice?
Agents are required to be knowledgeable, but not on the level of accountants or tax attorneys. Yes, if they are not knowledgeable like they should be.
