Section 18 Flashcards by Danielle Pritchett

By looking at the combined property values within a taxable area and the budget needs of the government, what is calculated to multiply by each property value to determine each individual owner’s taxes owed?

millage rate

How well did you know this?

Not at all

Perfectly

Per Florida Statutes; county, city, and school taxes cannot each exceed

10 mills

How well did you know this?

Not at all

Perfectly

is based on the best use of the property, the property location, the property size, the replacement value of the property, and the condition and income generated from the property.

Just value

How well did you know this?

Not at all

Perfectly

Taxable Value x Tax Rate =

Taxes Due

How well did you know this?

Not at all

Perfectly

One mill equals

1/1000th of a dollar expressed as 0.001

How well did you know this?

Not at all

Perfectly

Property assessments and proposed tax rates for the year sent to each property owner by August of
the year being taxed as the

Truth in Millage or TRIM notice

How well did you know this?

Not at all

Perfectly

The tax bill is sent out around late October or early November. Full payment of the tax bill which is
being charged in arrears is due by

March 31st of the next year

How well did you know this?

Not at all

Perfectly

Truth in Millage or TRIM notice is sent to owners each year during which month?

August

How well did you know this?

Not at all

Perfectly

There are 3 options to protest a property tax assessment:

Informal meeting with the property appraiser;
File an appeal with the Value Adjustment board;
Litigate in court

How well did you know this?

Not at all

Perfectly

Petitions of appeal to the value adjustment board must be done within __ days of the TRIM notice
being mailed

How well did you know this?

Not at all

Perfectly

Lawsuits must be filed within __ days of the date of a VAB decision or the property appraiser’s certification of the tax roll, whichever is later

How well did you know this?

Not at all

Perfectly

Amendment I passed in 2008 limits property tax:

Part 1. Provides for an additional ________ tax exemption;

homestead

How well did you know this?

Not at all

Perfectly

Amendment I passed in 2008 limits property tax:

Part 2. Created a ________ provision;

Portability

How well did you know this?

Not at all

Perfectly

Amendment I passed in 2008 limits property tax:
Part 3. Provided for ________ ________ tax
exemptions;

personal property

How well did you know this?

Not at all

Perfectly

Amendment I passed in 2008 limits property tax:

Part 4. Placed an __________ ____ on non-homestead property

Assessment Cap

How well did you know this?

Not at all

Perfectly

Amendment I passed in _____

2008

How well did you know this?

Not at all

Perfectly

are Immune to taxation and no tax is assessed

Government buildings

How well did you know this?

Not at all

Perfectly

property that has been assessed, however, the property is relieved of paying taxes through their applied tax exemptions such as with churches or schools

Exempt property

How well did you know this?

Not at all

Perfectly

The first ________ of the homesteaded property value is exempt from taxation for all county, city and school property taxes

$25,000

How well did you know this?

Not at all

Perfectly

The just value of a property minus the actual assessed value is considered the value of the

Save Our Homes (SOH) Benefit

How well did you know this?

Not at all

Perfectly

Any assessed value between _______ and ________ of homestead property is exempt from taxation for county and city taxes. It is not exempt for school taxes

$50,000 and $75,000

How well did you know this?

Not at all

Perfectly

The Save Our Homes amendment limits changes in assessed values to ____ of the previous year’s assessed value or the percentage of change in the Consumer Price Index – whichever is lower

How well did you know this?

Not at all

Perfectly

If the just value of the new homestead is more than the previous home’s just value, the entire cap value can be transferred:

the SOH Benefit
=

Assessed Value of New Home

How well did you know this?

Not at all

Perfectly

Veterans and spouses receive a _______ exemption if at least 10% disabled from military service. Not
limited to homesteaded property

$5,000

How well did you know this?

Not at all

Perfectly

Veterans and spouses have ____ exemption when totally and permanently disabled or confined to a wheelchair for a military related incident

100%

There is an additional ____ exemption for homesteaded property for a widow/er; if totally and permanently disabled; or legally blind

$500

There is a ____ exemption for a quadriplegic.

100%

Surviving spouses of soldiers who died in military duty are ____ exempt

100%

a partial exemption that protects agricultural land from being taxed as having a higher value if theoretically used for some other purpose than agricultural.

Greenbelt law exemption is

Part 4 of Amendment I places an assessment cap of ___ increases per year for non-homesteaded property

10%

taxes placed on property owners for a one-time purpose

Special assessments

Unpaid special assessments become a ____ on the property just as do unpaid property taxes.

lien

A Property tax lien is a ______ lien taking first position in lien order with a special assessment lien taking the next position

superior

Property tax bills that go unpaid after the due date of March 31st, are sold publicly through a

Tax Certificate

If the tax certificate remains unpaid by the property owner for a period between 2 and 7 years, a sale by auction of the actual property can be forced. The amount of interest paid is part of the bidding process and is capped at an ___ maximum rate

18%

Property owners can claim a mortgage interest deduction on their federal taxes for their

principal residence and a second home

Property owners may deduct the amount of property taxes on their principal residence and second home on their

federal taxes

Property purchasers may use an IRA withdrawal of up to _______ for a home down payment as a “First Time Home Buyer” without incurring a federal tax early withdrawal penalty.

$10,000

Property sellers are excluded from capital gains tax for a sale of their principal residence of capital gains up to

$250,000

married sellers are excluded from capital gains tax for a sale of their principal residence of capital gains up to

$500,000

To be excluded from capital gains taxes, sellers must have lived in the property as a primary residence for __ out of the previous five years prior to the sale

Property owners may deduct interest paid on home equity loans of up to _______ for the federal tax years the interest is paid.

$100,000

Property owners may claim a deduction on federal taxes for _______ ______ charged by lenders of home mortgages

discount points

Property owners may deduct from federal taxes __________ points paid to refinance a home. These points are deducted over the life of the loan.

origination

means that up to 15 percent of the purchase price may be required to be withheld by the purchaser on a sale by a foreign seller

Foreign Investment in Real Estate Property Tax Act (FIRPTA)

If the buyer completes a sale without the required withholding being collected from the seller, the payment of the tax burden shifts to the

buyer

Cash flow is also called

after tax cash flow

Cash flow can be defined as “before tax” or ____ ______ ____ when it doesn’t include the expense of income taxes paid on the profit of the real estate investment

Cash throw-off

takes the depreciable basis and subtracts proportionally from a tax year’s gross income over a period of years defined as set by the IRS

straight-line depreciation

basis (or adjusted basis) minus the value of the land

Depreciable basis

The period for which the IRS divides depreciation under the straight-line depreciation method is determined by the “useful asset life” of the property:

27.5 years for residential rental property 39 years nonresidential income-producing property

charged on property held for one year or less and are taxed as ordinary income.

Short-Term Gains

charged on property held for longer than a year

Long Term Capital Gain

Property tax is called an __ _______ tax.

ad valorem

The profit or loss from the sale of a property or other asset

capital gains

an alternative method for managing and financing infrastructure required to support community development

Community Development District (CDD)

a local, special purpose government authorized by | Chapter 190 of the Florida Statutes

Community Development District (CDD)

The amount of money needed to meet the payments on the loan

debt service

Properties that are not included for taxation. Tax is calculated, but not charged

exempt properties

taking payments on the sale, thereby deferring taxation until year that payment is received.

installment sale

Properties, mainly government properties, that are not figured in the tax rolls at all

immune properties

defined as market value

just value

when the investor sells one property to purchase another

like-kind exchange

a unit of money equaling $1 for each $1,000

mill

A one-time purpose taxation such as sidewalk improvement assessment

special assessment

gross income minus operating expenses including the cost of financing but not including money set aside for reserves

taxable income

Assessed value minus applicable exemptions.

taxable value