Chaper 5

Question 1

Ad Valorem Tax

Answer 1

A tax assessed against real property based upon its value. Revenue from such taxes is used to pay for the general operational expenses of the taxing authority.

Question 2

Appropriation

Answer 2

The formal legislative enactment of how a taxing authority intends to acquire funds through taxation, along with a detailed account of how the money is intended to be used.

Question 3

Assessed Value

Answer 3

An amount used for tax purposes and arrived at by multiplying a fixed percentage times the property’s fair market value. The percentage is predetermined by the taxing authority and in some cases by state law.

Question 4

Assessment

Answer 4

Also known as Assessed Value

Question 5

Assessment Rate

Answer 5

Percentage which, when multiplied times market value, determines assessed value. 

Question 6

Assessment Roll

Answer 6

A record of all taxable properties in a taxing jurisdiction, along with their assessed value. Also called tax base

Question 7

Blockbusting

Answer 7

The illegal practice of inducing homeowners in a neighborhood to sell their property by calling attention to the possibility that minority families may be moving in, resulting in a lessening of property values, a decline in quality of education, and an increase in crime.

Question 8

Board of Equalization

Answer 8

A state authority whose function is to apply equalization factors to assessed values of properties located in counties which use different assessment rates. The purpose of this procedure is to assure fair and equitable treatment of taxpayers required to pay a state ad valorem tax.

Question 9

Buffer Zone

Answer 9

A parcel of land which separates other land used for different purposes. For instance, a playground may be used as a buffer zone to separate residential property from commercially used land.

Question 10

Building Codes

Answer 10

Regulations, either local or state, which set construction standards for materials, methods and safety procedures.

Question 11

Certificate of Occupancy

Answer 11

Authorization from a building inspector that construction has been completed in compliance with building codes and is ready for occupancy.

Question 12

Civil Rights Act of 1866

Answer 12

The first federal legislation intended to prohibit racial discrimination in the sale or rental of all types of property.

Question 13

Enabling Legislation

Answer 13

A law or statute enacted by any government body which enables (makes legal) some practice not previously authorized. A condominium law enacted by state legislation is an example of enabling legislation.

Question 14

Equalization Factor

Answer 14

A mathematical factor used to adjust assessed values of properties in differing taxing jurisdictions. The equalization factor is multiplied by the assessed value. This procedure is normally used when states charge an ad valorem tax based upon local assessed values determined by using different assessment rates.

Question 15

Fair Housing Act of 1968

Answer 15

Title VIII of the Federal Civil Rights Act, establishing a policy of equal housing opportunity, and making discrimination illegal.

Question 16

Floor-area Ratio

Answer 16

A guideline used to regulate building density. The ratio is calculated by dividing a building’s floor area by the ground (lot) area or by dividing the number of floors in a building by the portion of the lot covered by the building.

Question 17

Homestead Exemption

Answer 17

An ad valorem tax reduction for persons who own the home they occupy

Question 18

Improvement District

Answer 18

An area designed to benefit from certain improvements for which the property owners will be levied a special assessment.

Question 19

Jones vs Mayer

Answer 19

A landmark discrimination case in which the U.S. Supreme Court in August, 1968 upheld the Civil Rights Act of 1866 in its ruling that discrimination on racial ground is unlawful.

Question 20

Land-use Districts

Answer 20

Areas in a community which are classified (zoned) according to their intended use, such as residential, commercial, and industrial.

Question 21

Master Plan

Answer 21

A comprehensive, long-range plan to guide the growth and development of a community. 

Question 22

Mill

Answer 22

One tenth of one cent. One mill = 0.001 used in property taxation

Question 23

Minority

Answer 23

Any person or persons who can be identified by race, color, sex, religion, national origin, familial status, handicap, or other locally or federally adopted characteristic.

Question 24

Nonconforming Use

Answer 24

Land use in existence prior to the enactment of a zoning ordinance. Because zoning cannot be retroactive, the use is allowed to continue even though it does not conform to the new ordinance. Any building which is a nonconforming use maybe used so long as it is in existence. If it is destroyed it anyway or abandoned, the use will be terminated, and the building cannot be rebuilt under the existing zoning law.

Question 25

Panic selling

Answer 25

Also called blockbusting

Question 26

Realists

Answer 26

Active members of the National Association of Real Estate Brokers

Question 27

REALTORS

Answer 27

Active member of the National Association of REALTORS

Question 28

Right of Redemption

Answer 28

A taxpayer’s right, in some states, to get real property back within a specified period of time after it is sold at a tax sale by paying all past due taxes, penalties, and interest.

Question 29

Setback

Answer 29

An imaginary line which denotes the space required between any improvement in the front, sides, and rear of the lot. Also called a building line.

Question 30

Specific Advertising

Answer 30

Advertisement of a specific property listed with the brokerage firm

Question 31

Spot Zoning

Answer 31

Zoning which designates certain areas for use the differs from the general requirements in the area.

Question 32

Steering

Answer 32

Limiting a prospect’s choice of certain neighborhoods because of race, color, sex, religion, national origin, familial status, or handicap. Also called slanting or channeling

Question 33

Tax Certificate

Answer 33

A document which entitles the successful bidder in a tax sale to receive a deed after the original owner’s period of redemption has ended.

Question 34

Variance

Answer 34

Authorization from the zoning board, or similar body, for a property owner to deviate from the existing required use of land. This right is generally granted only the property owners who are successful and demonstrating that the required zoning creates a hardship.

Question 35

Zoning

Answer 35

A procedure whereby a local government divides its community into districts with each having a designated use.