NC Property Taxation and Assessment

Question 1

In North Carolina, excise tax is paid when and by whom?

A)
At recordation of the deed, by the attorney, with funds collected from the buyer
B)
At settlement, by the seller
C)
At settlement, by the buyer
D)
At recordation of the deed, by the attorney with funds collected from the seller

Answer 1

D)
At recordation of the deed, by the attorney with funds collected from the seller

Explanation
It is paid to North Carolina when the deed is recorded at the county courthouse. This is one of the requirements of closing.

Reference: Property Taxation and Assessment

Question 2

North Carolina excise tax is calculated based on which of the following?

A)
Assessed value from the previous tax appraisal
B)
Loan amount
C)
Purchase price minus loan amount
D)
Purchase price

Answer 2

D)
Purchase price

Explanation
North Carolina excise tax is calculated on the purchase price of the home.

Reference: Property Taxation and Assessment

Question 3

Per North Carolina statute, the assessed value of real property, for tax purposes, must be reevaluated how often?

A)
Every eight years
B)
Every fiscal year
C)
Every four years
D)
Every year

Answer 3

A)
Every eight years

Explanation
Per North Carolina statute, each county must do an octennial reappraisal every eight years.

Reference: Property Taxation and Assessment

Question 4

Which of the following laws allows a municipality to levy taxes on real property?

A)
TILSRA Truth in Lending Simplification Reform Act
B)
Statute of Frauds
C)
North Carolina Machinery Act
D)
Good Funds Settlement Act

Answer 4

C)
North Carolina Machinery Act

Explanation
The North Carolina Machinery Act gives the government the right to assess real and personal property for tax purposes.

Reference: Property Taxation and Assessment