Taxes & Assessments Flashcards
What are the 4 government forces that affect property use and property Value? (PETE)
Police power
Eminent Domain
Taxation
Escheat
What are property taxes?
They are the one single identifiable local revenue source for municipalities and schools, which makes local government directly accountable for executing operations and programs in a cost-efective manner
T/F
Property taxes in NYS are administered locally to finance local governments and public schools?
True
What are some of the entities that are exempt from Property Tax (10)
Government Entities Religious Organizations Schools Parks Hospitals Airports embassies or consulates Historic Area/Historic buildings Indian Reservations Port Authority
Whom are eligible for partially property tax exemptions (5)
People w/ Disabilities
Veterans
Gold Star Parents
Elderly
Farmers
What is NYS’s STAR Program?
School Tax Relief program that takes the form of a check for the tax credit sent to the homeowner.
What are the two parts to STAR?
Basic - available to any owner-occupied primary residence, regardless of age, where owners have an income of less than $500,000
Enhanced - available to elderly homeowners, 65 and older, who meet income criteria
P.I.L.O.T
Payment in lieu of taxes -
What two pieces make up a property tax bill?
- property’s taxable assessed value as assigned by the assessor based on value of property
- tax rate of the jurisdiction where property is located
what does an “ad valorem tax” refer to?
refers to taxes based on the assessed value of property
What is a tax assesor?
a local government official who has been either elected or appointed to estimate the value of real property within the boundaries of a specific municipal entity that has the authority to tax real property.
THEY DO NOT DETERMINE THE PROPERTY TAX
ASSESSMENT = MARKET VALYE OF PROPERTY X LEVEL OF ASSESSMENT %
Ex. Market value = $100,000 | Level of Assessment = 27%
Assessment = $27,000
ASSESSMENT = MARKET VALYE OF PROPERTY X LEVEL OF ASSESSMENT %
Ex. Market value = $100,000 | Level of Assessment = 27%
Assessment = $27,000
What are special assessing units?
an assessing unit with a population of one million people or more.
Example, NYC and Nassau County
In NYS how are tax rates expressed in dollars per _____ of taxable assesssed value
$1000 of taxable assessed value
TAX RATE = TAX LEVY/TAXABLE ASSESSED VALUE x 1000
example: $2M tax Levy | taxable assess value = $80M
2,000,000/80,000,000 = 0.025
0.025 * 1000 = 25
$25 for every $1000 of taxable assessed value
Property Tax Annual Payment = Taxable assessed valued X tax Rate
example - taxable assed value = $120,000
120,000/1000 = 120 X $20 = $2400
A property is appraised at $150,000 and assessed for tax purposes at 50% of Value. What are the quarterly taxes if the tax rate is $80 per $1000
75000/1000 = 75 * 80 =6000 = annual tax
quarterly = 1500
a Property with an appraised value of $80,000 is assessed at 40%. The annual taxes are $1120. What is the tax rate?
80,000 x 40% = 32,000
32000/1000 = $32
1120/32 = $35
what does equalization attempt?
attempts to measure the relationship of locally assessed values to a fluid real estate market
equalization rate = assessed value / market value
