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Questions and Answers
If a property's actual assessment is $250,000 and the appraised assessment is $225,000, how much is the property over-assessed?
If a property's actual assessment is $250,000 and the appraised assessment is $225,000, how much is the property over-assessed?
- $475,000
- $25,000 (correct)
- $0
- $225,000
A municipality has a total market value of $120,000,000. Its total assessed value is $24,000,000. What is the equalization rate for this municipality?
A municipality has a total market value of $120,000,000. Its total assessed value is $24,000,000. What is the equalization rate for this municipality?
- 5%
- 0.2%
- 20% (correct)
- 2%
The total market value of a municipality is $15,000,000, and the total assessed value is $2,250,000. What is the equalization rate for the municipality?
The total market value of a municipality is $15,000,000, and the total assessed value is $2,250,000. What is the equalization rate for the municipality?
- 0.15%
- 2.25%
- 7.5%
- 15% (correct)
Which of the following best describes a homestead?
Which of the following best describes a homestead?
Besides taxation, what is another method the government uses to fund public services?
Besides taxation, what is another method the government uses to fund public services?
A property has an assessed value of $8,000 and the local municipality has an equalization rate of 2.5%. What is the property's market value?
A property has an assessed value of $8,000 and the local municipality has an equalization rate of 2.5%. What is the property's market value?
Why would a homeowner most likely want to formally contest their property assessment?
Why would a homeowner most likely want to formally contest their property assessment?
What is the term used to describe the imposing of a tax, fee, or fine?
What is the term used to describe the imposing of a tax, fee, or fine?
A property owner disagrees with their property tax assessment and wants to challenge it in court. What specific legal process should they initiate?
A property owner disagrees with their property tax assessment and wants to challenge it in court. What specific legal process should they initiate?
What designation is given to a city or town recognized by the State Board of Real Property Tax Services for completing a revaluation in accordance with specific regulations?
What designation is given to a city or town recognized by the State Board of Real Property Tax Services for completing a revaluation in accordance with specific regulations?
What term refers to taxes assessed based on the value of property?
What term refers to taxes assessed based on the value of property?
A property has a market value of $800,000, and the local municipality's equalization rate is 8.5%. What is the property's assessed value?
A property has a market value of $800,000, and the local municipality's equalization rate is 8.5%. What is the property's assessed value?
When an assessment protest cannot be settled by the assessment review committee, where does the case proceed next?
When an assessment protest cannot be settled by the assessment review committee, where does the case proceed next?
A property has a market value of $450,000 and is located in a municipality with an equalization rate of 12%. What is the assessed value of the property?
A property has a market value of $450,000 and is located in a municipality with an equalization rate of 12%. What is the assessed value of the property?
How are property assessments typically determined?
How are property assessments typically determined?
To calculate the tax rate for a specific district, what formula is used?
To calculate the tax rate for a specific district, what formula is used?
A municipality has a total market value of $75,000,000 and a total assessed value of $11,250,000. What is the equalization rate for the municipality?
A municipality has a total market value of $75,000,000 and a total assessed value of $11,250,000. What is the equalization rate for the municipality?
A property is assessed at $325,000 and the local municipality has an equalization rate of 60%. What is the market value of the property?
A property is assessed at $325,000 and the local municipality has an equalization rate of 60%. What is the market value of the property?
Who typically leads a Small Claims Assessment Review (SCAR) proceeding?
Who typically leads a Small Claims Assessment Review (SCAR) proceeding?
A property is assessed at $62,000, and the tax rate is 12.5%. How much is owed in property taxes?
A property is assessed at $62,000, and the tax rate is 12.5%. How much is owed in property taxes?
An assessor is unable to access the interior of a property for assessment. Knowing that the interior condition impacts property value, what is the best course of action for the assessor?
An assessor is unable to access the interior of a property for assessment. Knowing that the interior condition impacts property value, what is the best course of action for the assessor?
If an assessor is directed to make a change to property assessments, what action must the assessor take to make this change?
If an assessor is directed to make a change to property assessments, what action must the assessor take to make this change?
What documentation is most beneficial for a property owner to bring to a Small Claims Assessment Review (SCAR) proceeding?
What documentation is most beneficial for a property owner to bring to a Small Claims Assessment Review (SCAR) proceeding?
A property is valued at $625,000 and has an equalization rate of 2%. What is the assessed value of the property?
A property is valued at $625,000 and has an equalization rate of 2%. What is the assessed value of the property?
How is the equalization rate calculated?
How is the equalization rate calculated?
What typically happens to a property's value after its taxes are reduced?
What typically happens to a property's value after its taxes are reduced?
Under what circumstance might a property owner formally contest their property's assessment?
Under what circumstance might a property owner formally contest their property's assessment?
What is the term for when a property's assessment is based on its recent sale price?
What is the term for when a property's assessment is based on its recent sale price?
A special one-time charge by a municipality on specific properties for a direct benefit, such as a new sewer line, is known as what?
A special one-time charge by a municipality on specific properties for a direct benefit, such as a new sewer line, is known as what?
What is the term for a property that is typically unavailable for use because the client is trying to sell the property?
What is the term for a property that is typically unavailable for use because the client is trying to sell the property?
The tax rate in a certain district is $10 per $1,000 of assessed value. A house in that district is assessed at $250,000. What is the annual property tax bill?
The tax rate in a certain district is $10 per $1,000 of assessed value. A house in that district is assessed at $250,000. What is the annual property tax bill?
A farm has several buildings on it including a barn, sheds, and a house. The farmer lives in the house. How is the property best classified?
A farm has several buildings on it including a barn, sheds, and a house. The farmer lives in the house. How is the property best classified?
What is the next step after an assessor receives a complaint on a property?
What is the next step after an assessor receives a complaint on a property?
What is the purpose of assessment review?
What is the purpose of assessment review?
What happens in the appeal process after a notice of determination is sent?
What happens in the appeal process after a notice of determination is sent?
If a homeowner wins a judicial review, what usually happens?
If a homeowner wins a judicial review, what usually happens?
What is the benefit of small claims assessment review?
What is the benefit of small claims assessment review?
What is the deadline to file for small claims assessment in New York?
What is the deadline to file for small claims assessment in New York?
What kind of properties are eligible for the small claims assessment review?
What kind of properties are eligible for the small claims assessment review?
What results if the assessment is proven to be unequal?
What results if the assessment is proven to be unequal?
Flashcards
How to determine if a property is over-assessed?
How to determine if a property is over-assessed?
The actual assessment minus the appraised assessment.
How to calculate the equalization rate?
How to calculate the equalization rate?
Total assessed value divided by the total market value.
What is a homestead?
What is a homestead?
A home that is owned and is the usual residence of a client, along with all the surrounding land and any building on that land.
One way the government raises money?
One way the government raises money?
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How to find market value given assessed value and equalization rate?
How to find market value given assessed value and equalization rate?
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Why protest property assessment?
Why protest property assessment?
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Assessment of tax also known as what?
Assessment of tax also known as what?
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What is tax certiorari?
What is tax certiorari?
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Approved Assessing Unit
Approved Assessing Unit
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Ad Valorem Taxes
Ad Valorem Taxes
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Where does an unresolved assessment protest end up?
Where does an unresolved assessment protest end up?
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Is assessment based on the highest/best use?
Is assessment based on the highest/best use?
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Formula for tax rate?
Formula for tax rate?
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Formula for equalization rate?
Formula for equalization rate?
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Assessing w/o interior access?
Assessing w/o interior access?
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Changing an assessment?
Changing an assessment?
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Assessed value calculation?
Assessed value calculation?
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What happens to property value after taxes are reduced?
What happens to property value after taxes are reduced?
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Assessment on new purchase price?
Assessment on new purchase price?
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What is an assessment?
What is an assessment?
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What is a non-homestead?
What is a non-homestead?
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Evidence to bring to SCAR proceeding?
Evidence to bring to SCAR proceeding?
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Study Notes
Over-assessed Property Formula
- Over-assessed property is determined by: Actual Assessment - Appraised Assessment
Equalization Rate Formula and Examples
- The equalization rate is calculated by: (Total Assessed Value) / (Total Market Value)
- Example 1: Total market value is $89,000,000, total assessed value is $19,580,000, equalization rate is 22% ($19,580,000 / $89,000,000 = 0.22)
- Example 2: Total market value is $24,000,000, total assessed value is $3,600,000, equalization rate is 15% ($3,600,000 / $24,000,000 = 0.15)
- Example 3: Total market value is $48,000,000, total assessed value is $8,640,000, equalization rate is 18% ($8,640,000 / $48,000,000 = 0.18)
Homestead Definition
- A homestead is a home owned by and is the usual residence of a client, along with all the surrounding land and any building on that land.
Government Revenue
- Taxes are a primary way the government raises money.
Market Value Calculation
- Market value = Assessed value / Equalization Rate
- Example 1: Property is assessed at $5,100, with an equalization rate of 1.5%, the market value is $340,000 ($5,100 / 0.015 = $340,000)
- Example 2: Property is assessed at $260,000, with an equalization rate of 40%, the market value is $650,000 ($260,000 / 0.40 = $650,000)
Protesting Property Assessment
- Owners may protest assessment values that are too high because property taxes are directly linked to the assessed value.
Assessment of Tax
- A levy is also known as an assessment.
Challenging Real Estate Tax Assessment
- Tax certiorari is the legal process by which a property owner challenges the real estate tax assessment on a given property in an attempt to reduce the property's assessment and real estate taxes.
Approved Assessing Unit
- An approved assessing unit is a city or town that has been certified by the State Board of Real Property Tax Services to have completed a revaluation or an update in conformance with its rules and regulations.
Valuation
- According to valuation is known as Ad Valorem Taxes.
Assessed Value Calculation
- Assessed Value = Market Value * Equalization Rate
- Example 1: Market value is $720,000, with an equalization rate of 9%, the assessed value is $64,800.
- Example 2: Market value is $320,000, with an equalization rate of 15%, the assessed value is $48,000 ($320,000 x 0.15 = $48,000)
- Example 3: A property is valued at $375,000 with an equalization rate of 1%, the assessed value is $3,750 ($375,000 x 0.01 = $3,750)
Assessment Protest Resolution
- If an assessment protest is not resolved through the assessment review committee, the case will end up in court.
Property Assessment Basis
- Assessments are made on the current condition of the property (including the value of the land), not the highest and best use.
Tax Rate Formula
- Tax rate = (Number of Parcels) / (Municipal Budget)
SCAR Proceeding Leadership
- An appointee typically leads a SCAR proceeding.
Taxes Owed Formula
- Taxes owed = Assessed Value * Tax Rate
- Example: Property assessed at $48,550 and the tax rate is 15.8%, taxes owed are $7,670.90 ($48,550 x 0.158 = $7,670.90).
Assessing Property with Limited Access
- An assessor can provide an approximate assessment based on limited information if they do not have access to the property interior.
Changing Assessment
- To change an assessment, an assessor must apply the change to the entire assessing district.
SCAR Proceeding Evidence
- A property owner should bring a recently completed appraisal to a SCAR proceeding.
Equalization Rate Formula
- Equalization rate = (Total Assessed Value of Municipality) / (Total Market Value of Municipality)
Property Value and Taxes
- The property value increases if the taxes are reduced.
Protesting Assessment
- A property owner may protest the assessment of their property if the property was unequally assessed.
Assessing Recently Sold Property
- Assessing a recently sold property based on the new purchase price is known as Welcome Neighbor Policy.
Charge Against Real Estate
- A charge against real estate made by a unit of government to cover a proportionate cost of an improvement, such as a street or sewer, is known as assessment.
Non-Homestead Definition
- A home that is generally unavailable during the time the client makes a reasonable effort to sell the property is known as non-homestead.
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Description
Understand property assessment with key formulas. Learn how to determine over-assessed property and calculate the equalization rate. Explore the definition of a homestead and the role of taxes in government revenue.
