Unit 9 Flashcards
What are two reasons for making land the basis of taxation?
1) The usual stability of land values makes land taxes predictable.
2) The attachment of taxes to land makes enforcement reliable.
3) Land is traditionally related to productivity and wealth; government takes its share.
What is a taxing district? Give several examples.
A taxing district is a governmentally-established entity, defined by a geographical boundary, that has the authority to collect taxes for specific purposes. Examples are school districts, library districts, and county bridge and highway departments.
How does a special tax district differ from a permanent tax district?
A local government authority establishes a special tax district to pay for the cost of a specific improvement in a specific area. Special tax districts cease to exist once the costs of the specific project have been paid for, unlike permanent tax districts.
What appraisal methods do tax assessors use to determine the assessed value of a property?
Assessors use any of the standard appraisal methods—Sales Comparison, Cost, Income—to assess properties, depending on the type of property. Agricultural land valuation is based on land productivity. The assessor uses whatever approach provides the best estimate of market value, which may then be modified according to formulas to arrive at an assessed value.
What are some circumstances that typically trigger a reassessment of a property?
Improvements to the property in general. Specifically, basement finishing, garage additions, swimming pool construction.
What is a “homestead exemption?”
A portion of a property’s value that is exempted from taxation because the property, or part of it, is owned and occupied as a family residence.
The high school district in your town needs operating funds. How does it regularly obtain them?
The district determines how much of its budget must be paid for from property taxes. Tax officials calculate the tax base and a tax rate for the school district by dividing the tax base into the revenue required. This tax rate is applied to the taxable value of each property and billed to the homeowners at the proper time. The taxing agency (usually the county) collects the revenues and distributes the earmarked portion to the school district.
Is a special assessment a voluntary tax lien or an involuntary tax lien?
It can be either, depending on whether the citizen has asked for the improvement which is to be paid for by a special assessment (voluntary) or whether the taxing entity has initiated the assessment (involuntary).
What protections might your state offer to a homeowner against the inadvertent loss of ownership for failure to pay property tax?
Many states have grace or redemption period, a notification process, and equitable or statutory right of redemption.
There are no ____ on real property.
federal taxes
Property taxes are based on the _____ of the property
assessed value
_______ and _________ districts levy taxes on real property.
Assessing units ; special assessment
____ value is determined according to state law, usually by a county or township assessor or appraiser. Ad valorem taxes are paid annually.
Assessed
Level of assessment
the value may be adjusted by multiplying by a uniform percentage for the municipality.
Properties are _____for tax purposes on a regular schedule that is established by statute. Can be done “off schedule” when a property owner makes improvements to the property.
reassessed
An owner who is dissatisfied with the actions of the ____ or review board can take the protest to court.
appeals
Real property tax exemptions criteria:
The use to which the property is put.
The owner’s ability to pay taxes.
The desire of the state and local governments to encourage certain economic or social activities.
A property owner generally qualifies for a ______ if they are head of a family or resides on the property for a required length of time.
homestead exemption
