Taxes & Assessments

Question 1

What are the 4 government forces that affect property use and property Value? (PETE)

Answer 1

Police power
Eminent Domain
Taxation
Escheat

Question 2

What are property taxes?

Answer 2

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

Question 3

T/F

Property taxes in NYS are administered locally to finance local governments and public schools?

Answer 3

True

Question 4

What are some of the entities that are exempt from Property Tax (10)

Answer 4

Government Entities
Religious Organizations
Schools
Parks
Hospitals
Airports
embassies or consulates
Historic Area/Historic buildings
Indian Reservations
Port Authority

Question 5

Whom are eligible for partially property tax exemptions (5)

Answer 5

People w/ Disabilities

Veterans

Gold Star Parents

Elderly

Farmers

Question 6

What is NYS’s STAR Program?

Answer 6

School Tax Relief program that takes the form of a check for the tax credit sent to the homeowner.

Question 7

What are the two parts to STAR?

Answer 7

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

Question 8

P.I.L.O.T

Answer 8

Payment in lieu of taxes -

Question 9

What two pieces make up a property tax bill?

Answer 9

• property’s taxable assessed value as assigned by the assessor based on value of property
• tax rate of the jurisdiction where property is located

Question 10

what does an “ad valorem tax” refer to?

Answer 10

refers to taxes based on the assessed value of property

Question 11

What is a tax assesor?

Answer 11

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

Question 12

ASSESSMENT = MARKET VALYE OF PROPERTY X LEVEL OF ASSESSMENT %

Answer 12

Ex. Market value = $100,000 | Level of Assessment = 27%

Assessment = $27,000

Question 12

ASSESSMENT = MARKET VALYE OF PROPERTY X LEVEL OF ASSESSMENT %

Answer 12

Ex. Market value = $100,000 | Level of Assessment = 27%

Assessment = $27,000

Question 13

What are special assessing units?

Answer 13

an assessing unit with a population of one million people or more.

Example, NYC and Nassau County

Question 14

In NYS how are tax rates expressed in dollars per _____ of taxable assesssed value

Answer 14

$1000 of taxable assessed value

Question 15

TAX RATE = TAX LEVY/TAXABLE ASSESSED VALUE x 1000

Answer 15

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

Question 16

Property Tax Annual Payment = Taxable assessed valued X tax Rate

Answer 16

example - taxable assed value = $120,000

120,000/1000 = 120 X $20 = $2400

Question 17

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

Answer 17

75000/1000 = 75 * 80 =6000 = annual tax

quarterly = 1500

Question 18

a Property with an appraised value of $80,000 is assessed at 40%. The annual taxes are $1120. What is the tax rate?

Answer 18

80,000 x 40% = 32,000

32000/1000 = $32

1120/32 = $35

Question 19

what does equalization attempt?

Answer 19

attempts to measure the relationship of locally assessed values to a fluid real estate market

Question 20

equalization rate = assessed value / market value