Chapter 15 - Taxes and Assessments Flashcards
Ad Valorem Taxes
Property Taxes
Appropriation Process
The enactment of a taxing body’s budget and sources of money into law
Appraises
To estimate the value of something
Assessed Value
A value placed on a property for the purposes of taxation
Mill Rate
Property tax rate expressed in tenths of a cent per dollar of assessed valuation
$0.04 = 40 mills
Tax Certificate
A document issued at a tax sale that entitles the purchaser to a deed at a later date if the property is not redeemed
Assessment Rolls
A list or book, open for public inspection, that shows assessed values for all lands and buildings in a taxing district
Assessment Appeal Board
Local government body that hears and rules on property owner complaints of overassessment
Board of Equalization
A government body that reviews property tax assessment procedures
Special Assessments aka Impact Fees
A charge levied to provide public built improvements that will benefit a limited geographical area
Improvement District aka Assessment District
A geographical area which will be assessed for a local improvement
- The area receiving the improvement
Public Improvement
Improvement that benefits the general public and is financed through the general property tax
Go to Bond
A bond issue prepared by government of fiscals that total the unpaid assessments in the improvement district
- Spreads cost of improvement over 5-10 years
Front-Foot Basis
A special assessment for the installation of storm drains, curbs and gutters where the property owner is charged for each foot of his lot that abuts the street being improved
Basis
- The price paid for the property
- Used in calculating income taxes
- If built, it is the cost of land and construction costs
Amount Realized
Selling price minus selling expenses
Gain on the Sale
Difference between amount realized and the basis
Adjusted Basis
The sales price of the property less commissions, fix-ups, and closing costs
Installment Method
Sale of real estate in which the proceeds of the sale are deferred beyond the year of sale
The dollar amount of taxes to be levied on a property may be increased by what
Raising the assessment ratio