Chapter 19 Flashcards by derek hall

What is an assessment notice?

(1) A demand for payment of a specified amount of property taxes
(2) A notice issued by the municipality stating the date on which the assessor will appraise your property
(3) An extract from the assessment roll concerning a specific property
(4) A notice of the cost to the property owner of a local improvement project

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Which one of the following occupiers of real property would NOT be liable, by statute, for the real property taxes?

(1) the registered owner of a life estate
(2) the registered holder of a long-term lease
(3) the registered owner of an estate in fee simple
(4) the registered holder of an agreement for sale

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If a property owner considers that the actual value assessment of his property is too high, he must first submit his complaint to:

(1) a Property Assessment Review Panel.
(2) the Board of Variance.
(3) the Municipal Finance Authority.
(4) the Property Assessment Appeal Board.

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If you consider the value shown on your assessment notice too high, you may make a formal complaint to:

(1) the Property Assessment Review Panel.
(2) the Board of Variance any time prior to the end of the year.
(3) the Municipal Council.
(4) the Assessment Appeal Court.

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What is an assessment notice?

(1) an extract of the assessment roll concerning a specific property
(2) a notice issued by the municipality stating the date on which the assessor will appraise your property
(3) a demand for payment of a specified amount of property taxes
(4) a notice of the cost to the property owner of a local improvement project

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Whose responsibility is it under the Assessment Act to establish Actual Value?

(1) the local municipal council
(2) the Superintendent of Real Estate
(3) the Lieutenant-Governor in Council
(4) the Assessor

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Who determines the real property tax rate for general tax purposes in organized territories of British Columbia?

(1) the local municipal council
(2) the federal government
(3) the Assessor
(4) the Lieutenant-Governor in Council

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Who may claim a home-owner grant?

(1) anybody whose name appears on the assessment roll
(2) the tenant of a property, if he/she has a lease exceeding 3 years
(3) the owner of a property, whether he/she lives there or not
(4) the owner-occupier of a property

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In British Columbia’s real property taxation system, the actual value of a property is:

(1) the value at which the property last sold.
(2) the value shown on the assessment notice.
(3) the assessor’s estimate of market value.
(4) both (2) and (3).

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Certain classes of properties receive a full or partial exemption from real property taxation. Which of the following would receive either full or partial exemption?

(1) crown land
(2) university property
(3) cemeteries
(4) all of the above

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Which one of the following real properties must be assessed at market value for purposes of real property taxation?

(1) a small house, surrounded by warehouse properties, owned continuously by one owner since January, 1946
(2) Shell Oil pipelines
(3) residences owned by elected government officials
(4) land in the agricultural land reserve which is also classified as farmland under the Assessment Act

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In establishing the actual value of a residential property for tax assessment purposes the Assessor may consider:

(1) the present use of the property.
(2) the location of the property.
(3) the rental value of the property.
(4) a comprehensive list of factors including all of those mentioned above.

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If you consider that the value shown on your assessment notice is too high, you can make a formal complaint to the:

(1) municipal court.
(2) Court of Appeal.
(3) assessment commissioner.
(4) Property Assessment Review Panel.

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When can an appeal be made to the Supreme Court of British Columbia regarding a real property assessment value?

(1) when a property owner receives his or her assessment notice
(2) after receipt of the Property Assessment Appeal Board decision, and then only on a point of law
(3) never
(4) after receiving notification of the decision of the Property Assessment Review Panel.

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When can an appeal be made to the Supreme Court of British Columbia regarding a real property assessment value?

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Which one of the following statutes affects the real property taxation system in British Columbia?

(1) Real Estate Services Act
(2) School Act
(3) Arbitration Act
(4) Land Transfer Form Act

Under the Assessment Act the Property Assessment Review Panels may hear complaints when a property has been assessed at too high or too low an amount. Under the Act, where the complainant is someone other than the owner:

(1) the appellant has to notify the owner.
(2) the appellant may orally present a notice of complaint to the assessor.
(3) the assessor must deliver notice of the hearing to the owner.
(4) the assessor has to prove that the property is fairly taxed.

Jennifer Joseph has lived alone in an apartment since the death of her husband ten years ago. She has just turned 60 years of age, retired from her job as a bus driver, and wants to begin gardening as a hobby to fill in her retirement years. She has found a small house which is selling at a price she can afford because it is the only residential property in an area of commercial development. The present owners, who are anxious to sell, have lived in the house for about twenty years and have developed a magnificent garden which appeals very much to Mrs. Joseph; however, she is worried about having enough retirement income to meet the mortgage payments and the property tax payments if she uses all of her savings as a down payment. Which one of the following statements is true?

(1) Mrs. Joseph should apply for a reverse annuity mortgage (R.A.M.) because a R.A.M. will require lower mortgage payments than a conventional mortgage.
(2) After Mrs. Joseph’s purchase, the property will continue to have an assessed value for real property tax purposes which is based on its value as a residential property.
(3) Mrs. Joseph may make application to defer payment of the net property tax for as many years as she owns and resides in the house.
(4) If Mrs. Joseph becomes an owner-occupier, the home-owner grants will allow reduction of her taxes to no more than $350.00.

Jim O’Hara owns a small office building located on the fringes of downtown Vancouver, BC. He has just leased the building to Citizens for an Everlasting Planet (CEP), a registered charitable organization. In this scenario:

(1) Mr. O’Hara may apply for a property tax exemption.
(2) Mr. O’Hara may apply for property tax relief.
(3) CEP may apply for a property tax exemption.
(4) None of the above.

The total assessed value of all properties in the municipality of Smithtown, BC is $2,900,765,800. The municipality needs to raise $13,623,500 through its general tax on real properties to finance its anticipated expenditures this year. All classes of property will be taxed at the same rate. Other taxing authorities have set the following tax rates for taxes to be collected by the municipality of Smithtown:

School 5.644
Hospital 0.3981
Regional District 0.0734

Able Smith, the grandson of the man after whom the town is named, purchased his first home in Smithtown last year; its assessed value is $97,645. Presuming that no taxes other than the above-mentioned taxes are collected, calculate Able’s gross taxes payable on this property.

(1) $805.06
(2) $1,055.74
(3) $458.59
(4) $1,435.74

i believe we have to divided the 97,645/1000 = 97.64 not sure the rest though

suposed be 97.64 X (5.644 + .03981 + .0734) 6.1155
=$597.1174for the property tax

then..

(((((find the mill rate = amount to be raised/total taxable assessment

X 1,000 = Mil Rate))))))

13,623,500 / 2,900,765,800 X1000 = 4.69

then

4.69 X 97,645/1000 = 458.591

458.591 + 597.1175 = 1055.70

A complaint against the amount of a real property assessment might proceed through hearings by the four different bodies listed below:

A. Property Assessment Appeal Board
B. Property Assessment Review Panels
C. Court of Appeal
D. Supreme Court of British Columbia

The order of these hearings would be:
(1) A, B, D, C
(2) B, A, D, C
(3) A, C, B, D
(4) B, A, C, D

Under the combined provisions of the Local Government Act and the Assessment Act, the “owner” who is liable to pay the real property taxes includes:

A. where a person is a registered owner of a life estate, the life tenant;
B. where there is an agreement for sale and purchase of the real property, the registered holder of the last registered agreement for sale and purchase.

Which of the following statements are TRUE?

(1) Only A is included under the definition of “owner”.
(2) Only B is included under the definition of “owner”.
(3) Neither A nor B is included under the definition of “owner”.
(4) Both A and B are included under the definition of “owner”.

Which one of the following factors would make a property owner eligible to apply for deferral of real property taxes?

(1) The property owner is a member of parliament.
(2) The property owner is a divorcee.
(3) The property owner is a widower.
(4) The property owner is a war veteran.

Which of the following properties would be fully exempt from property taxation?

(1) Martland, BC has recently built a new City Hall building. The former city hall is still owned by the municipality, but is now rented out and operates as a profitable art gallery.
(2) A church is located on a one acre parcel of land in Prince George, BC. The church has built a multi-family dwelling on a portion of the site to provide additional revenue.
(3) A university which permits community groups to use its playing fields during the summer.
(4) All owner-occupiers who earn less than $12,000 a year in gross income.

Mr. Johnston's house in Burnville, BC has been assessed at $110,000 for property tax purposes. The following tax rates have been set by the municipality and other taxing authorities: General Tax Rate 5.13 School Tax Rate 4.24 Hospital District Tax Rate 0.137 What will be Mr. Johnston's gross taxes payable on this property? (1) $1,045.77 (2) $564.30 (3) $950.70 (4) Not enough information is given to determine the gross taxes payable

1 ok, so what you have to do is first 110,000 divided by 1000 (this is the part we didnt know!!) which equal 110 then multiply this by the tax rate 5.13 + 4.24 + .13 =9.5 110 X 9.5 = 1045.77

The total assessed value of all properties in the municipality of Grand River, BC is $2,900,765,800. The municipality needs to raise $13,623,500 through its general tax on real properties to finance its anticipated expenditures this year. All classes of property will be taxed at the same rate. Other taxing authorities have set the following tax rates for taxes to be collected by the municipality of Grand River: School 6.1340 Hospital 0.3728 Regional District 0.0912 Hans Sum purchased his first home in Grand River last year; its assessed value is $123,729. Presuming that no taxes other than the above-mentioned taxes are collected, what will be Hans' gross taxes payable on this property? (1) $1,397.46 (2) $816.36 (3) $1,523.72 (4) $581.10

1 example.... (((((((amount to be raised/total taxable assessment X 1,000 = Mil Rate 4.69 X 123,729 divided by 1000 = 580.28 (see below) Using 3.70 as the Mil Rate, a taxpayer with an average property valued at $340,000 would be sent a tax bill for $1,258. 3.70 x $340,000 1,000 = $1,258.)))))) 581.10 + 816 ( 123,729/1000 = 123.72 X 6.59 (6.1340 + .3728 + .0912) =1397.46!!!

what does defferal of property tax mean?

Property tax deferment is a provincial low-interest loan program that helps qualified homeowners pay their annual property taxes on their principal residence. Taxes can be deferred for any year the homeowner lives in the home and continues to qualify for the program

which of the following statements is false regarding GST 1. transactions will only be subject to GST if they are expressly listed in the legislation as a transaction for which GST applies 2. GST is a value added tax 3. compared to income tax, GST has a relatively low rate of taxation 4. GST is imposed excise tax act

which of the following statements is TRUE regarding GST in a transaction for the sale of real estate? 1. GST generally does not apply to the amount of the deposit until the closing date 2. GST will always apply to reimbursements for pre payments 3. under the excise tax act, the seller is the party who is required to pay the GST 4. all amounts found on the statement of adjustments are subject to GST

yang was the owner of an office building in downtown vancouver. she recently sold the building to ashley for $100 million. Ashley did not pay the GST on the sales and Yang has just an assesment for the GST due on the sales of the property from the canada revenue agency("CRA") worth 5 million. which of the following statements is false? 1. the 5 million is collectible immediately by the CRA 2. Yang will have 90 days from the date of the assement to file an objection with the CRA if she wishes to dispute it 3. if yang files and objection and it is affirmed by an appeals officer and the CRA, yang has exhausted her options in terms of appealing the the assesment 4. yang may pursue ashley for the uncollected gst that she has been assesed for

which of the following would likely not fall under the definition of a "residential complex" under the excise tax act? 1. land that is reasonably necessary for the use and enjoyment of the complex as a place of residence 2. a detached home in which a family resides 3. a condominium unit being rented out to a university student on a year-long lease 4. a home that is used for short-term rentals on Air B & B

which of the following buyers who have purchased a residential property in the metro Vancouver regional district is most likely to be able to claim an exemption or a rebate for the foreign buyer's tax? 1. an American citizen who is living in Seattle and has purchased the land as an investment property 2. a citizen of the united kingdom who purchased land in Vancouver while staying in Canada on a working holiday visa. she received status as a permanent resident of Canada 6 months after purchasing the home 3. an investment company that was incorporated in Canada but operates under the control of a parent company in brazil 4. a Canadian citizen who holds title on the property of a friend who is a Japanese citizen and is looking to move to Canada after finishing a 3-year work contract in tokyo

in which of the following scenarios would the profit, or capital gain, realized upon the sale of property be MOST likely to be completely exempt from tax 1. the seller purchased the property as a long term investment 2. the seller purchased the property in order to flip the real estate by selling it quickly for a profit 3. the seller purchased the property to provide suplimental income by renting it out 4. the seller purchased the property to live in as their principal residence

Helen is the owner and occupier of a detached 2-bedroom house in Vancouver. which of the following statements regarding property taxes on Helen's property is false? 1. the assessment act is the sole source of statute law governing the taxation of real property in British Columbia 2. the municipality can appeal the assessment on Helen's home if they believe the original assessed value is too low 3. if Helen moves to Toronto but keeps her home in Vancouver for her mother to live in, Helen may have a higher annual net property tax liability 4. Helen has lived in her home for the last 11 years and in that time her neighborhood has been rezoned to multi-family strata buildings. each strata lot has a higher assessment value than Helen's current detached home. Helen may apply for special assessments for her home to be assessed based on its current residential use.