Chapter 19

Question 1

ad
valorem

Answer 1

A Latin term meaning
“according to value,” used to
describe taxes assessed on
the value of real estate or
personal property.

Question 2

assessed
value

Answer 2

The value assigned to a
property for taxation
purposes by a government
assessor or appraisal district.

Question 3

homestead
exemption

Answer 3

A tax relief program that
reduces the taxable value of
a primary residence for
eligible homeowners.

Question 4

special
assessment

Answer 4

A additional property tax
levied by a government
authority to fund specific
public improvements or
services that directly benefit
the property

Question 5

tax
base

Answer 5

The total value of property,
income, or assets within a tax
jurisdiction that is subject to
taxation.

Question 6

tax
certificate

Answer 6

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.

Question 7

tax
deed

Answer 7

A legal document issued by a
government authority
transferring ownership of a
property to the holder of a tax
certificate following a tax sale

Question 8

tax
district

Answer 8

A geographic area within
which property taxes are
levied by a governing
authority, such as a
municipality, county, or
school district.

Question 9

tax
levy

Answer 9

The formal action taken by a
government authority to
impose and collect taxes
from property owners within
its jurisdiction.

Question 10

tax
lien

Answer 10

A legal claim against a
property for unpaid taxes,
which may be enforced
through foreclosure or other
legal means.

Question 11

tax
rate

Answer 11

The percentage of property
value used to calculate
property taxes, determined
by dividing the total tax
revenue needed by the tax
base

Question 12

tax
sale

Answer 12

A public auction conducted
by a government authority to
sell tax certificates or tax
deeds on properties with
delinquent property taxes

Question 13

Why is it important for real estate agents to understand real estate taxation?

Answer 13

To guide clients toward informed decisions

Question 14

The purpose of a homestead tax exemption is

Answer 14

to offer an amount of tax relief on an owner’s principal residence

Question 15

A unique characteristic of a special assessment tax is that

Answer 15

it only applies to properties which will benefit from the public improvement

Question 16

A tax certificate

Answer 16

entitles its holder to apply for a tax deed after a certain period

Question 17

The role of local tax districts is to

Answer 17

impose property taxes for specific municipal services

Question 18

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?

Answer 18

$1,410

Question 19

According to law, states

Answer 19

may delegate taxing authority to county governments

Question 20

An equitable right of redemption

Answer 20

gives a delinquent taxpayer a grace period prior to the tax sale to pay property taxes

Question 21

A special tax district might be created to

Answer 21

create a two-mile extension of county sewer facilities

Question 22

Which of the following is true with respect to real property taxation by the federal government?

Answer 22

There are no federal ad valorem taxes on real property

Question 23

As part of the assessment process, many taxing entities utilize equalization boards in order to

Answer 23

smooth out wide discrepancies of assessed values within the district

Question 24

What is a tax deed?

Answer 24

A conveyance instrument for a property that is sold to enforce a tax lien

Question 25

A millage rate is derived by

Answer 25

dividing the tax requirement by the tax base

Question 26

A homeowner receives a tax bill that she feels is outrageous. This taxpayer may

Answer 26

appeal to adjust the assessed valuation

Question 27

What is a tax levy?

Answer 27

The action a taxing jurisdiction takes to impose a tax

Question 28

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?

Answer 28

$1,330

Question 29

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

Answer 29

properties owned by a government agency