Chapter 19 Flashcards
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valorem
A Latin term meaning
“according to value,” used to
describe taxes assessed on
the value of real estate or
personal property.
assessed
value
The value assigned to a
property for taxation
purposes by a government
assessor or appraisal district.
homestead
exemption
A tax relief program that
reduces the taxable value of
a primary residence for
eligible homeowners.
special
assessment
A additional property tax
levied by a government
authority to fund specific
public improvements or
services that directly benefit
the property
tax
base
The total value of property,
income, or assets within a tax
jurisdiction that is subject to
taxation.
tax
certificate
A document issued by a
government authority as
evidence of a tax lien on a
property, which may be sold
to investors at a tax sale.
tax
deed
A legal document issued by a
government authority
transferring ownership of a
property to the holder of a tax
certificate following a tax sale
tax
district
A geographic area within
which property taxes are
levied by a governing
authority, such as a
municipality, county, or
school district.
tax
levy
The formal action taken by a
government authority to
impose and collect taxes
from property owners within
its jurisdiction.
tax
lien
A legal claim against a
property for unpaid taxes,
which may be enforced
through foreclosure or other
legal means.
tax
rate
The percentage of property
value used to calculate
property taxes, determined
by dividing the total tax
revenue needed by the tax
base
tax
sale
A public auction conducted
by a government authority to
sell tax certificates or tax
deeds on properties with
delinquent property taxes
Why is it important for real estate agents to understand real estate taxation?
To guide clients toward informed decisions
The purpose of a homestead tax exemption is
to offer an amount of tax relief on an owner’s principal residence
A unique characteristic of a special assessment tax is that
it only applies to properties which will benefit from the public improvement
A tax certificate
entitles its holder to apply for a tax deed after a certain period
The role of local tax districts is to
impose property taxes for specific municipal services
A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $470,000?
$1,410
According to law, states
may delegate taxing authority to county governments
An equitable right of redemption
gives a delinquent taxpayer a grace period prior to the tax sale to pay property taxes
A special tax district might be created to
create a two-mile extension of county sewer facilities
Which of the following is true with respect to real property taxation by the federal government?
There are no federal ad valorem taxes on real property
As part of the assessment process, many taxing entities utilize equalization boards in order to
smooth out wide discrepancies of assessed values within the district
What is a tax deed?
A conveyance instrument for a property that is sold to enforce a tax lien
A millage rate is derived by
dividing the tax requirement by the tax base
A homeowner receives a tax bill that she feels is outrageous. This taxpayer may
appeal to adjust the assessed valuation
What is a tax levy?
The action a taxing jurisdiction takes to impose a tax
A town is replacing a sidewalk that serves five homes. The length of the sidewalk is 200 feet. Mary’s property has 38 feet of front footage. If the cost of the project to be paid by a special assessment is $7,000, what will Mary’s assessment be?
$1,330
Certain classes of property owner and types of property are exempted or immune from real property taxation in many areas. The protected categories usually include
properties owned by a government agency
