section 19 real estate taxation

Question 1

A local government entity authorized by state, county, or municipality to levy taxes for a particular purpose.

Answer 1

Tax District:

Question 2

A real property’s annual tax levied by taxing entities according to the property’s assessed value.

Answer 2

Ad Valorem:

Question 3

The total of the assessed valuations of real properties within a taxing jurisdiction, less the total of exemptions.

Answer 3

Tax Base:

Question 4

The value of a property as established by assessors for the purpose of ad valorem taxation.

Answer 4

Assessed Value:

Question 5

An exemption of a portion of the assessed value of a homeowner’s principal residence from ad valorem taxation.

Answer 5

Homestead Exemption:

Question 6

The county or district looks at its sources of revenue, such as sales taxes, business taxes, income taxes, state and federal grants, fees, and so forth. The part of the budgeted expenditures that cannot be funded from other income sources must come from real property taxes. This budgetary shortfall becomes the ad valorem tax levy. The tax levy is derived every year, since budget requirements and revenue tallies are performed on an annual cycle.

Answer 6

Tax Levy:

Question 7

The ad valorem tax rate of a taxing district, derived by dividing revenues required from taxpayers by the district’s tax base. If the millage rate is 30, the tax rate is 3%, or $3.00 per $100 of assessed valuation (net of exemptions).

Answer 7

Tax Rate (Millage Rate):

Question 8

A lien against property to secure a tax levy for a specific public improvement, such as a new road or sewer. Only properties benefitting from the improvement are taxed and liened.

Answer 8

Special Assessment:

Question 9

A tax lien is the government’s claim on a property that is generally placed when a taxpayer fails to pay taxes owed.

States may impose a tax lien against property for failure to pay any real property taxes which the state has levied or delegated to local taxing bodies.

The federal government can impose a tax lien against property for failure to pay any tax due the Internal Revenue Service.

Answer 9

Tax Lien:

Question 10

An instrument that gives the holder the right to apply for a tax deed after paying taxes on a property and after a statutory period.

Answer 10

Tax Certificate:

Question 11

A deed used to convey title to property sold in a tax foreclosure.

Answer 11

Tax Deed:

Question 12

A court-ordered sale of a property to satisfy unpaid real estate taxes.

Answer 12

Tax Sale:

Question 13

Which of the following can legally levy real property taxes?

Answer 13

A tax district.

Question 14

Certain classes of property owner and types of property are exempted or immune from real property taxation in many areas. The protected categories usually include

Answer 14

properties owned by a government agency.

Question 15

What is the purpose of an equalization factor in ad valorem taxation?

It modifies a local tax rate to bring it into conformity with statutory tax rates.

It changes the assessed value of an individual property to make it reflect the assessed values of other properties in the same neighborhood.

It adjusts assessments in a locality to make them more consistent with an average level for the state or other higher level jurisdiction.

It adjusts the amount of the homestead exemption in a certain area to make it proportionally

equivalent to the average homestead exemption in other areas.

Answer 15

It adjusts assessments in a locality to make them more consistent with an average level for the state or other higher level jurisdiction.

Question 16

To qualify for a homestead exemption, a property owner generally must

Answer 16

reside on the property.

Question 17

What is a tax levy?

Answer 17

The action a taxing jurisdiction takes to impose a tax.

Question 18

A school district’s tax rate is 10 mills. The school district’s required revenue from taxes is $10,000,000. What is the tax base of the area?

Answer 18

$1,000,000,000.

Question 19

A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $47,000?

Answer 19

$141.

Question 20

A town is replacing a sidewalk that serves five homes. The length of the sidewalk is 200 feet. Mary’s property has 38 feet of front footage. If the cost of the project to be paid by a special assessment is $7,000, what will Mary’s assessment be?

Answer 20

$1,330.

Question 21

What is a tax deed?

Answer 21

A conveyance instrument for a property that is sold to enforce a tax lien.

Question 22

The right of a property owner to redeem his or her property after a tax sale is called

Answer 22

a statutory right of redemption.

Question 23

An equitable right of redemption

Answer 23

gives a delinquent taxpayer a grace period prior to the tax sale to pay property taxes.

Question 24

A tax certificate

Answer 24

entitles its holder to apply for a tax deed after a certain period.

Question 25

A unique characteristic of a special assessment tax is that

Answer 25

it only applies to properties which will benefit from the public improvement.