Questions and Answers
What does the buyer of a tax certificate agree to?
Agrees to pay the taxes due on a property in return for the right to apply for a deed.
In calculating the tax base of an area, what happens to exemptions?
What is the purpose of equalization in the assessment process?
Which of the following is a benefit to local taxing authorities of taxing property?
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What is a unique characteristic of a special assessment tax?
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What is a tax levy?
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What does a tax certificate entitle its holder to do?
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What option is available to a homeowner who feels their tax bill is too high?
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What is the purpose of a homestead tax exemption?
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What are ad valorem taxes based on?
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What is the right of a property owner to redeem their property after a tax sale called?
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What creates a voluntary tax lien?
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Who can levy real estate property taxes?
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What is the purpose of an equalization factor in ad valorem taxation?
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How is a homeowner's property tax bill derived?
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Where does a property owner file an assessment complaint?
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What is tax rate calculated based on?
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A tax rate of 4% might be expressed in any of the following ways EXCEPT:
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Who has the burden of proof for an assessment change when a homeowner appeals an assessment?
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Which classes of property are exempted or immune from real property taxation?
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Study Notes
Tax Certificate and Property Acquisition
- A buyer of a tax certificate agrees to pay owed taxes to claim a deed on the property.
- Tax certificates enable immediate legal title acquisition to foreclosed properties under certain conditions.
Tax Base Calculation
- Tax base calculations involve subtracting exemptions from assessed values to determine the taxable amount.
Equalization Process in Tax Assessment
- An equalization process is applied to smooth out discrepancies in assessed values, promoting fairness in taxation.
Benefits of Property Tax Revenue
- Predictable property tax revenue is advantageous for local taxing authorities compared to other tax forms.
Special Assessment Tax Characteristics
- Special assessments are unique as they apply only to properties that directly benefit from public improvements.
Definition of Tax Levy
- A tax levy represents the total amount of money a municipality needs to raise through property taxation.
Tax Certificate Functions
- Holding a tax certificate allows one to apply for a tax deed after a specified period.
Homeowner's Tax Bill Options
- Homeowners who dispute their tax bills can file complaints with the local board of assessment review.
Homestead Tax Exemption Purpose
- A homestead tax exemption provides tax relief for qualifying owners residing in their primary homes.
Ad Valorem Taxes
- Ad valorem taxes are based on the assessed value of property, determining tax obligations.
Statutory Right of Redemption
- Property owners possess a statutory right of redemption, allowing them to reclaim property after a tax sale.
Creation of a Voluntary Tax Lien
- A special assessment creates a voluntary tax lien only if requested by affected property owners.
Authority to Levy Property Taxes
- Property taxes can only be levied by a designated tax district, not by other entities like utility companies.
Purpose of Equalization Factor
- An equalization factor adjusts assessments in a locality to align them with average levels for the state or higher jurisdictions.
Property Tax Calculation Method
- A homeowner's tax bill is calculated by multiplying the tax rate of each district by the assessed property value.
Filing an Assessment Complaint
- Property owners should file assessment complaints with either the assessor or the relevant board of assessment review.
Tax Rate Calculation
- Tax rates are derived from local tax requirements and the tax base, rather than individual property assessments.
Expressions of Tax Rate
- Various expressions of a 4% tax rate include $4 per $100 and $40 per $1,000, but not as 4 mills.
Burden of Proof in Assessment Changes
- In appeals regarding assessment changes, homeowners bear the burden of proof to substantiate their claims.
Property Tax Exemptions
- Classes of properties often exempt from real property taxation typically include those owned by government agencies.
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Description
Test your knowledge on national ownership and tax certificates with these informative flashcards. Understand important concepts such as legal title, property taxes, and the rights of tax certificate buyers. Perfect for real estate students and professionals looking to reinforce their understanding of the subject.
