Real Estate Unit 2 - Government Flashcards
Zoning - Amendment
is a zoning change for an entire area. Can cause legally non conforming use.
Non conforming use
allows owners to continue to present use that no longer complies with current zoning. Can’t change the business. Can’t do major structural changes
Zoning Variance
Issued by the BOARD OF ADJUSTMENTS when the zoning code causes undue hardship on property owner.
Special exception or conditional permit.
File for a conditional use permit. Permission to do business in a residential area.
Tax IMMUNE
Government buildings. Not assesse and not taxed.
Tax EXEMPT
Subject to taxes but they don’t pay. (Those in surrounding communities pay)
Partially Tax Exempt properties
HOMESTEAD - occupied as principal residence, subject to taxation but partially relieved.
4 Governmental Rights for Land
Police Power, Taxes, Eminent Domain, Escheat
Homestead Protections
From judgement creditors - personal loans and credit card debt.
Homestead NOT protected
Property tax, special assessment, mortgages, vendor’s lien, construction lien.
Name of Homestead
Save our Homes
Application Dates Homestead
Jan 1 - March 1
Deadline to pay taxes
March 31
Homestead Exemptions
$25k school tax, $25k city and county taxes, additioanl $500 for widow, blind, handicapped
Mill rate
by thousands. Move the decimal 3 to the right. EX: 5 becomes .005, 15 becomes .015
Save our Homes Purpose
Caps the increase of ASSESSED VALUE. Lesser of the 2: 3% or CPI % Change
Purpose: To protect homeowners from rapidly rising tax rates srpunf from rapidly rising property rates. A credit it given.
For tax purposes, property value is
ASSESSED (not appraised).
Ad Valorem
At Just Value
Percents of savings for City/State taxes paid early:
Nov - 4% Dec - 3% Jan - 2% Feb - 1% March - 0%
If taxes are delinquent, the county auctions
Property Tax Certificate
Green Belt Law
Protect Farmers from higher taxes in rapid growth areas.
Potential development property is taxed at lower agriculture rates.
Special Assessment
- Fees paid against properties that benefit from public improvements.
Federal Income Tax Deduction for Principal Residence if itemizing
Mortgage Interest
Interest on Home Equity Loan
Loan Orginiation on Points
Property Taxes
Exclusion from Capital Gains Taxes in the sale of principal residence
Under 500k per couple, $250k single
Must own and occupy for 2 years of past 5
Sale at capital loss is not deductible.
Deductions for Investment Property
Operating Expenses
Mortgage Interest
Depreciation
Straight Line Depreciation
27.5 Years Residential
39 Years Investment
Eminent Domain
The RIGHT of the gov to take your property for JUST COMPENSATION.
Condemnation
The PROCESS by which the Government enacts Eminent Domain.
Just Compensation for Eminent Domain Means
Fair Price plus Damages
Effect of Eminent Domain
Gov purchases land, you and your tenants are out. Any ownership and tenant rights are terminated.
Escheat
You die Intestate (no will) with no heirs, your land reverts to the government
Intestate
No will
