Section 3 - Property Taxation and Assessment Flashcards Preview

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Flashcards in Section 3 - Property Taxation and Assessment Deck (14)
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1
Q

Ad Valorem

A

Based on the value of

2
Q

Property taxes pay for

A

Fire, police, schools, roadways

3
Q

What three numbers do you need to calculate property tax?

A

Property’s appraised value
Assessment ratio
Tax rate

4
Q

Mill

A

One one-thousandth of a dollar/$1 per $1000 of assessed value. Not used in NC. NC property taxed on full assessed value.

5
Q

True Value

A

In NC = market value (price property should sell for)

6
Q

Machinery Act

A

The law that governs how NC counties appraise their properties

7
Q

Market Value/True Value

A

In NC, price buyer and seller will likely agree on

8
Q

Sales price

A

Price property actually sells for

9
Q

Lien

A

Legal claim against a property for payment

10
Q

Special assessment

A

A tax levied against a property to pay for a specific improvement that will benefit the property

11
Q

Formula for property taxes based on mill rates

A

Taxable value x mill rate divide by 1000

12
Q

Octennial reappraisal

A

8 year schedule for appraising property

13
Q

Horizontal reappraisal

A

4 years

14
Q

NC tax rate calculation

A

Tax bill = assessed value/100 X tax rate (as decimal)