Property Taxation and Assessment

Question 1

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

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

Answer 1

D)
Purchase price

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

Question 2

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

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

Answer 2

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

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

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 four years
C)
Every year
D)
Every fiscal year

Answer 3

A)
Every eight years

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

Question 4

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

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

Answer 4

D)
North Carolina Machinery Act