Chapter 18 Flashcards
What is Ad Valorem?
It means according to valuation
What is Assessed Value?
is the value that is used for tax purposes
What is an assessment?
is an official valuation of real property for tax purposes based on appraisals by the local assessor’s office.
What is the homeowner’s right to appeal?
- Homeowners can seek an adjustments within 25 days from the property county appraiser.
- If the appeal is rejected, the homeowner may file an appeal with the Value Adjustment Board.
- If the previous board and county appraiser have both rejected the homeowner’s request, the homeowner may file suit in the courts after he pays taxes under protest.
- Certiorari - If the previous board and county appraiser have both rejected the homeowner’s request, the homeowner may file suit in the courts after he pays taxes under protest.
What is Immune Property?
It is a Real Estate Property exemption used to indicate the county will not be taxing the property at all
Exempt or Partially Exempt Properties
These are properties such as churches and nonprofit organizations that own properties.
The county appraiser actually determines the Taxable Value of the property but the owners of the property are not required to pay.
In other words, the Exempt properties are subject to taxation, but the owner is released from the obligation.
There are three additional categories subject to tax exemption:
- Disable veterans
- Age 65 and older
- Quadriplegic and other low income individuals
What is Green Belt Law?
taxes agricultural land at a lower rate than the encroaching cities around the land, and preserves the land for future agricultural use.
Requirements for Green Belt protection are:
The length of time the land has been so utilized;
Whether the use has been continuous;
The purchase price paid;
Size, as it relates to specific agricultural use;
Whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices
Whether such land is under lease and, if so, the effective length, terms, and conditions of the lease; and
Such other factors that may from time to time become applicable.
Special Assessment Taxes are
- Taxes imposed by a city, county, or state only on those specific parcels of real estate that will benefit from a proposed public improvement such as a street or a sewer.
- These taxes are assessed by frontage foot and are always paid before general taxes and first deed of trust in case of a foreclosure.
- To determine how much the tax will be, take the front footage times the dollar amount.
What is known as basis?
The original purchase price of the home
What is known as the adjusted basis?
When all the additions or subtraction to the home price are applied
What are the items that decrease basis?
- Postpoined gain from the sale of a previous home before May 7, 1997,
- Deductible casualty losses,
- Insurance payments you received or expect to receive for casualty losses,
- Payments you received for granting an easement or right-of-way,
- Depreciation allowed or allowable if you used your home for business or rental purposes,
- Residential energy credit
- Credit claimed for improvements added to the basis of your home
- Nontaxable payments from an adoption assistance program
Principal residence tax advantages:
- Mortgage interest deduction on the principal home and second home each year,
- Deduction of property taxes on principal residence and second home each year
- A possible IRA withdrawal for first time home buyers without penalty,
- Exclusion from gain from sale of principal residence, so long as the gain does not exceed $250,000 for a single person or $500,000 for a couple filing jointly.
What is defined as Effective Gross Income?
is the amount of gross income less vacancy rate
