Section 18 Flashcards
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
Per Florida Statutes; county, city, and school taxes cannot each exceed
10 mills
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
Taxable Value x Tax Rate =
Taxes Due
One mill equals
1/1000th of a dollar expressed as 0.001
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
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
Truth in Millage or TRIM notice is sent to owners each year during which month?
August
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
Petitions of appeal to the value adjustment board must be done within __ days of the TRIM notice
being mailed
25
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
60
Amendment I passed in 2008 limits property tax:
Part 1. Provides for an additional ________ tax exemption;
homestead
Amendment I passed in 2008 limits property tax:
Part 2. Created a ________ provision;
Portability
Amendment I passed in 2008 limits property tax:
Part 3. Provided for ________ ________ tax
exemptions;
personal property
Amendment I passed in 2008 limits property tax:
Part 4. Placed an __________ ____ on non-homestead property
Assessment Cap
Amendment I passed in _____
2008
are Immune to taxation and no tax is assessed
Government buildings
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
The first ________ of the homesteaded property value is exempt from taxation for all county, city and school property taxes
$25,000
The just value of a property minus the actual assessed value is considered the value of the
Save Our Homes (SOH) Benefit
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
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
3%
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
Veterans and spouses receive a _______ exemption if at least 10% disabled from military service. Not
limited to homesteaded property
$5,000
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
2
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
