Principles 11 Flashcards

1
Q

Ad valorem

A
  • property taxes

- charged in relation to the value of the property taxed (Assessed value x tax rate = actual tax)

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2
Q

County assessor

A

Is the elected official responsible for determining assessed values and preparing the tax roll.

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3
Q

Change in ownership statement

A

-Anyone who acquires an interest in real property must file this with the county recorder or assessor within 45 days of the date the transfer is recorded.

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4
Q

Morgan property taxpayer’s bill of rights

A

Requires the county assessor to allow inspection and copying of documents related to an assessed property, including an auditor’s work papers.

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5
Q

Property tax year

A

-Runs from July 1 through the following June 30

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6
Q

Special assessment

A
  • Can be imposed on real property for a specific local purpose, such as street construction or repair
  • it appears as a separate entry on the property tax bill
  • are made on an ad valorem basis and are liens on the property until paid
  • Acquire approval of two-thirds of voters
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7
Q

Benefit assessment

A
  • Aka local assessment, levy based on other than assessed value, special benefit assessment, or special assessment
  • differs from s special assessment in that it’s tax base is only the properties benefited
  • not a deductible tax for federal and state income tax purposes
  • considered a nondeductible assessment to finance a property improvement, rather than a deductible assessment to finance maintenance.
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8
Q

Mello-Roos community facilities act

A
  • a special form of property assessment
  • law expanded the type of facilities and services that could be provided by improvement bonds and also eliminated the requirement that improvements specifically benefit individual properties
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9
Q

Minimum sales tax charged in California

A

7.5% of gross receipts

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10
Q

Sales tax

A

-Owed by retailers of tangible personal property regardless of whether the tax was paid by a customer

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11
Q

Use tax

A

-is charged to the purchaser for storage, use, or other consumption of certain purchased or leased tangible personal property.

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12
Q

Gift

A

-is a voluntary transfer by an individual of any type of property for less than full consideration

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13
Q

Adjusted gross income

A

Is the taxpayer’s total income

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14
Q

Taxable income

A

Is found by taking allowed exemptions and deductions from adjusted gross income

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15
Q

Tax bracket

A

Is the tax rate applicable to a taxpayer’s taxable income

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16
Q

Ordinary income

A

Is included in adjusted gross income for tax purposes and includes wages, business income, profits, interest, dividends, rents, and royalties, among other items.

17
Q

Capital asset

A

-is all property except business inventory or other property held for sale in the ordinary course of one’s business

18
Q

Basis

A

-Generally is its cost when acquired, also known as book value

19
Q

Adjusted cost basis

A

-the result of property ‘s basis reduced by the amount of depreciation already claimed, but it also can be increased by the cost of any improvements made.

20
Q

Capital gain

A

-is the difference between the sales price of a capital asset less selling costs and its adjusted cost basis.

21
Q

Tax credit

A

-is a direct deduction, not from income but from tax owed.

22
Q

Recovery property

A

-buildings used in business or for rental or other income-producing activities

23
Q

Tax deferred exchange

A

-the properties exchanged must be of like kind in nature or character.

24
Q

Installment sale

A

-a taxpayer sells property and receives payments over a term that extends beyond the present tax year.