Section 3 - Property Taxation and Assessment

Question 1

Ad Valorem

Answer 1

Based on the value of

Question 2

Property taxes pay for

Answer 2

Fire, police, schools, roadways

Question 3

What three numbers do you need to calculate property tax?

Answer 3

Property’s appraised value
Assessment ratio
Tax rate

Question 4

Mill

Answer 4

One one-thousandth of a dollar/$1 per $1000 of assessed value. Not used in NC. NC property taxed on full assessed value.

Question 5

True Value

Answer 5

In NC = market value (price property should sell for)

Question 6

Machinery Act

Answer 6

The law that governs how NC counties appraise their properties

Question 7

Market Value/True Value

Answer 7

In NC, price buyer and seller will likely agree on

Question 8

Sales price

Answer 8

Price property actually sells for

Question 9

Lien

Answer 9

Legal claim against a property for payment

Question 10

Special assessment

Answer 10

A tax levied against a property to pay for a specific improvement that will benefit the property

Question 11

Formula for property taxes based on mill rates

Answer 11

Taxable value x mill rate divide by 1000

Question 12

Octennial reappraisal

Answer 12

8 year schedule for appraising property

Question 13

Horizontal reappraisal

Answer 13

4 years

Question 14

NC tax rate calculation

Answer 14

Tax bill = assessed value/100 X tax rate (as decimal)