Chapter 19 - Taxation Flashcards
14 Questions
Which of the following is true with respect to real property taxation by the federal government?
a. It may impose ad valorem property taxes and capital gain tax.
b. It may not impose property taxes nor tax liens.
c. There are no federal ad valorem taxes on real property.
d. It may impose ad valorem tax, but not capital gain tax.
b. It may not impose property taxes nor tax liens.
According to law, states
a. may not levy real estate taxes.
b. may not impose tax liens.
c. may delegate taxing authority to county governments.
d. may prevent federal taxation of real estate within their respective jurisdictions, if properly legislated.
c. may delegate taxing authority to county governments.
The role of local tax districts is to
a. levy income, sales, and property taxes to meet their budget requirements.
b. manage their budgeted portion of real estate tax revenues levied and distributed by the state.
c. impose property taxes for specific municipal services.
d. place tax liens on its facilities.
c. impose property taxes for specific municipal services.
A special tax district might be created to
a. construct and manage a park district.
b. create a two-mile extension of county sewer facilities.
c. establish and maintain a public library.
d. create a fire department.
a. construct and manage a park district.
Ad valorem taxes are based on
a. the replacement value of property.
b. the assessed value of property.
c. the millage value of property.
d. the broker’s estimate of value.
b. the assessed value of property.
The ad valorem tax base of a municipal jurisdiction is equal to
a. the jurisdiction’s annual budget times the tax rate.
b. the total of all assessed values of properties minus exemptions.
c. the total amount of ad valorem taxes required by the budget.
d. the municipality’s budget multiplied times the millage rate.
d. the municipality’s budget multiplied times the millage rate.
As part of the assessment process, many taxing entities utilize equalization boards in order to
a. adjust millage rates within the district to ensure fairness.
b. modify the tax rate from one neighborhood to the next.
c. ensure that property owners have nearly equal tax bills.
d. smooth out wide discrepancies of assessed values within the district.
a. adjust millage rates within the district to ensure fairness.
A homeowner receives a tax bill that she feels is outrageous. This taxpayer may
a. appeal to adjust the millage rate.
b. appeal to adjust the district’s budget.
c. appeal to adjust the assessed valuation.
d. not appeal.
c. appeal to adjust the assessed valuation.
The purpose of a homestead tax exemption is
a. to exempt qualified property owners from ad valorem taxation.
b. to offer an amount of tax relief on an owner’s principal residence.
c. to encourage multiple property investment.
d. to exempt owners of principal residences who rent their properties.
b. to offer an amount of tax relief on an owner’s principal residence.
A millage rate is derived by
a. dividing the tax requirement by the tax base.
b. multiplying the tax base times the tax requirement.
c. adding an inflation factor to the prior year’s tax rate.
d. dividing the tax base by the tax requirement.
a. dividing the tax requirement by the tax base.
A homeowner’s total tax bill is derived by
a. dividing the tax requirement by the tax base.
b. multiplying each district’s tax rate times the assessed value of the property.
c. multiplying each district’s tax rate times the taxable value of the property.
d. averaging the tax rate for each tax district, and multiplying the average tax rate times the assessed value.
c. multiplying each district’s tax rate times the taxable value of the property.
A unique characteristic of a special assessment tax is that
a. it only applies to properties which will benefit from the public improvement.
b. the equalization board discounts levies for properties not affected by the public improvement.
c. more valuable properties which stand to benefit will pay proportionately more taxes.
d. it creates an involuntary junior lien on the property.
a. it only applies to properties which will benefit from the public improvement.
A tax certificate
a. certifies to tax collectors that a property owner has paid all ad valorem taxes on the property for the calendar year.
b. entitles its holder to apply for a tax deed after a certain period.
c. exempts its holder from paying taxes on the particular property referenced by the certificate.
d. waives a property owner’s rights of redemption in a foreclosure.
b. entitles its holder to apply for a tax deed after a certain period.
An equitable right of redemption
a. allows a holder of a tax certificate to redeem it for a tax deed.
b. gives a delinquent taxpayer a grace period prior to the tax sale to pay property taxes.
c. gives a holder of a tax deed the right to acquire the property named in the tax certificate.
d. gives a delinquent taxpayer a grace period after the tax sale to pay property taxes.
d. gives a delinquent taxpayer a grace period after the tax sale to pay property taxes.
