Level 4 - Property Taxation & Assessment

Question 1

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Ad Valorem Taxes

Answer 1

a tax calculated according to the assessed value of a piece of real estate

Question 2

Assessment

Answer 2

the determination of the value of a property for tax purposes

Question 3

Mill Rate

Answer 3

the mills per dollar of assessed value a property owner pays in property taxes

Question 4

North Carolina Machinery Act

Answer 4

North Carolina laws that govern ad valorem taxation

Question 5

Tax Base

Answer 5

the total taxable assets available in a specific area

Question 6

Tax District

Answer 6

an area in which a taxing entity is authorized by the government to levy taxes.

Question 7

Tax Rate

Answer 7

the percentage of the value that is taxed.

Question 8

Horizontal Reappraisal

Answer 8

when every property in an area is raised or lowered the same percentage based on market changes instead of being individually reassessed.

Question 9

Octennial Reappraisal

Answer 9

reappraisal that happens every eight years (the standard reappraisal cycle for NC property taxes)

Question 10

Special Assessment

Answer 10

additional taxes levied on the homeowners in a neighborhood or area to pay for improvements that benefit the people living there