Real Estate Taxes

Question 1

Real estate tax types

Answer 1

-General real estate tax or ad valorem tax
-Special assessment or improvement tax

Question 2

What does ad valorem mean?

Answer 2

“According to value”. Tax amount is based on the value of the property.

Question 3

What are special assessments?

Answer 3

Taxes that are only paid for by the property that uses them. For example, maintaining sidewalks or adding utility lines to a specific property.

Question 4

What is equalization factor?

Answer 4

An adjustment to a property’s value to make sure all properties are paying an equivalent amount in taxes.

Question 5

In rem forclosure

Answer 5

When a municipality forecloses on a property because of non-payment of property taxes.

Question 6

What it called when a municipality forecloses on a property because of non-payment of property taxes?

Answer 6

In rem foreclosure

Question 7

What is an adjustment to a property’s value to make sure all properties are paying an equivalent amount in taxes?

Answer 7

Equalization factor

Question 8

What are taxes that are only paid for by the property that uses them. For example, maintaining sidewalks or adding utility lines to a specific property?

Answer 8

Special assessments

Question 9

“According to value”. Tax amount is based on the value of the property.

Answer 9

Ad valorem

Question 10

Capital Gains

Answer 10

Difference between price you purchased a property at and then what you sold it at is taxed upon selling.

Question 11

Capital gains exemption

Answer 11

Conditions:
-Primary residence at least 24 months in previous 5 years.
-Did not use exemption in the 2 years prior to the sale

-$250,000 deduction for single individuals
-$500,000 deduction for married couples