Deck 14: Taxes and Assessments

Question 1

What is the most correct meaning of the term "ad valorem"?

A) Appraised value
B) Property tax
C) According to the value
D) And wife

Answer 1

C
The term "ad valorem" means according to the value.

Question 2

How is the priority of property tax liens established?

A) By the county tax assessor's decision which is final
B) By the amount of the lien compared to others
C) They have priority no matter when recorded
D) By the date of recording

Answer 2

C
Tax liens have priority no matter when recorded.

Question 3

A city or county sponsored public improvement is most appropriately financed by

A) general property taxes.
B) an improvement district.
C) an assessment district.
D) federal income taxes.

Answer 3

A
A city or county sponsored public improvement is most appropriately financed by general property taxes.

Question 4

If a home sold for $124,000 and was assessed at 80% of its value, how much would the property taxes be at a rate of $18.20 per thousand dollars of assessed value?

A) $992.00
B) $1,444.35
C) $1,805.44
D) $2,256.80

Question 5

The tax rate on a property is $3.32 per $100 of assessed valuation. The assessed value is $55,864. What is the annual tax payment? (round to the nearest dollar)

A) $185
B) $594
C) $592
D) $1,855

Question 6

If an owner's semiannual property taxes on a $90,000 home are $840 and the house is assessed at 80% of value, what is the tax rate per thousand dollars of evaluation?

A) $11.66
B) $18.66
C) $23.33
D) $720.00

Question 7

A woman sold her residence of 3 years for $96,500 and immediately invested in another residence at a sales price of $150,000. Assuming a basis of $46,500 in the original property, how much taxable gain will she have to report on this sale?

A) $7,000
B) $53,500
C) $46,500
D) None of the above

Question 8

When a home owner feels his property has been assessed too high and files an appeal, the burden of proof is on the

A) appraiser chosen by the home owner.
B) assessor's staff appraiser.
C) homeowner.
D) county supervisor.

Question 9

Plottage is likely to have which of the following results?

A) Raising the tax bill
B) Raising the tax rate
C) Accelerating the lien date
D) Lowering the tax bill

Question 10

Taxes become a lien

A) in advance.
B) only when delinquent.
C) in arrears.
D) when an assessment appeal is filed.

Question 11

All of the following may be considered in calculating the cost basis of a property in a capital gain tax computation EXCEPT

A) purchase price.
B) repairs or maintenance.
C) landscaping.
D) improvements.

Question 12

In a special assessment district, which occurs first?

A) Bonding
B) Hearing
C) Confirmation
D) Assessment collection

Question 13

A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale?

A) $6,300
B) $42,900
C) $83,700
D) $82,600

Question 14

The following public improvements would most probably be funded by a special assessment EXCEPT

A) installation of street lights.
B) curbs.
C) reconstruction of city sewage plant.
D) widening of neighborhood streets.

Question 15

All of the following benefit from property taxes EXCEPT

A) school budget.
B) municipal stadium.
C) public libraries.
D) parks.

Question 16

The theory of special assessment allocation is that the improvement benefits the

A) land in the district.
B) structures in the county.
C) people in the equalization area.
D) businesses in the district.

Question 17

A municipality is installing new sidewalks in a neighborhood. The cost of this project would most likely be paid for by means of

A) individual contracts with property owners.
B) income taxes.
C) a dedication.
D) a special assessment.

Question 18

Property taxes are

A) levied according to square footage.
B) a lien until paid.
C) based on income of the owner.
D) an encroachment until paid.

Question 19

A property is assessed at $25,000. With a tax rate of $2.50 per hundred, what will the taxes be?

A) $100
B) $625
C) $1,000
D) $6,250

Question 20

A lot measured 50' on a county road and 80' deep. The county assessor valued the lot at $15,000. The tax rate is $100 per front foot. The tax bill is

A) $1,500.
B) $5,000.
C) $8,000.
D) incalculable without the millage rate.

Question 21

Real property taxes are levied by the government and become a lien monthly.

Question 22

The property tax rate may be expressed as a mill rate, dollars per thousand or dollars per hundred.

Question 23

When a special assessment tax is imposed by a municipality for new neighborhood streets and the bill is not paid within the allotted time, the lien automatically goes to bond and is payable over 30 years.

Question 24

The assessment ratio of real property in a community may be

A) 100 percent of its appraised value.
B) more than its fair market value.
C) more than its appraised value.
D) any of the above.

Question 25

In order to determine taxable gain on a residence, the

A) basis must be subtracted from the amount realized from the sale.
B) closing costs are subtracted from the sale price.
C) basis and the amount realized from the sale must be the same.
D) sales price is subtracted from the basis.

Question 26

A home with a cost basis of $40,800 in 2003 is resold today for $80,000. Commissions and closing expenses are $5,600. What is the adjusted sales price?

A) $5,600
B) $33,600
C) $72,300
D) $74,400

Question 27

If a property owner feels over assessed, he would file a complaint with the tax certification board.

Question 28

Which of the following would be the highest tax rate?

A) 38 mills
B) $3.80./$100
C) $38/$1,000
D) no difference

Question 29

In calculating "basis" for income tax purposes, one must take into consideration the market value of similar properties.

Question 30

Publicly available books that show assessed valuations are called assessment valuation books.

Question 31

Persons wishing to defer federal income tax on the sale of a personal residence must have lived in the residence

A) 180 days.
B) six months.
C) one year.
D) two years of the last five.

Question 32

If the property taxes are not paid, the property is sold at a public auction.

Question 33

Local government programs and services are financed primarily through state income taxes.

Question 34

An investor sells his real property using an installment sale. His capital gains tax would be due

A) never, if he owned the property for more than one year.
B) after the last installment s paid.
C) the year of the sale.
D) as he receives the payments.

Question 35

Taxes on real property are levied

A) on an ad valorem basis.
B) according to the value of the property.
C) both a and b.
D) neither a nor b.

Question 36

Local government programs and services are financed primarily through

A) property taxes.
B) federal income taxes.
C) state income taxes.
D) state sales taxes.

Question 37

The amount of property taxes an owner pays is determined by the services provided by the city or county.

Question 38

Records of the assessed valuations of all properties within a jurisdiction are known as

A) appraisal rolls.
B) allocation rolls.
C) appropriation rolls.
D) assessment rolls.

Question 39

The cost of installing a residential street in a city will most likely be paid by means of special assessment.

Question 40

Tax rates may be expressed as

A) a millage rate.
B) dollars of tax per hundred dollars of valuation.
C) dollars of tax per thousand dollars of valuation.
D) any of the above.

Question 41

The property tax rate that is expressed in tenths of a cent per dollar of assessed valuation is called the ____________________ rate.

Question 42

A charge or hold by the government against a property to ensure the payment of taxes is called a ____________________.

Question 43

A municipality is installing all new traffic signals. The cost of this project would most likely be paid for by means of a bond issue.

Question 44

Long-term capital gain is a preferential income tax treatment on the sale of an appreciated asset.

Question 45

For income tax purposes, a single taxpayer can exclude up to ____________________ of gain from the sale of the taxpayer's principal residence.

Question 46

Taxes on real property are levied on an ad valorem basis.

Question 47

A document issued at a tax sale that entitles the purchaser to a deed at a later date if the is not redeemed is known as a tax deed.

Question 48

When local budgets along with a list of sources from which the money will be derived, is enacted into law, it is called the ____________________ process.

Question 49

In a residential neighborhood, the assessment for installation of storm sewers, curbs, and gutters is made on a _________________________ basis.

Question 50

The appropriation appeals board hears complaints from property owners regarding their assessments.

Question 51

A fee or tax on deeds and other documents payable at the time of recordation is known as a special assessment fee.

Question 52

In calculating the gain on the sale of a residence for income tax purposes, it is necessary to calculate the amount ____________________ from the sale.

Question 53

The sale of an appreciated property structured to spread out the payment of income taxes on the gain is called the installment method.

Question 54

In some states the board of equalization equalizes assessment procedures between counties.

Question 55

The assessed value of all lands and buildings are made available for public inspection in what is known as the ____________________ rolls.

Question 56

A public improvement benefits the general public and is financed through a general property tax.

Question 57

In some states, the board of ____________________ performs the task of equalizing assessment procedures between counties.

Question 58

The property tax rate expressed in tenths of a cent per hundred dollars of assessed valuation is called the mill rate.

Question 59

The first step in determining the amount of taxable gain upon the sale of an owner-occupied residence is to calculate the home's ____________________.

Question 60

The sale of an appreciated property structured to spread out the payment of income taxes on the gain is called a(n)____________________ sale.

Question 61

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
the geographical area which will be assessed for a local improvement

Question 62

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a charge or levy based directly on the measured distance that a parcel of land abuts a street

Question 63

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a charge or hold by a government against property to ensure the payment of taxes

Question 64

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
assessments levied to provide publicly built improvements that will primarily benefit property owners within a small geographical area

Question 65

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
according to value

Question 66

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a state or local tax charged on deeds at the time of recording

Question 67

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a tax expressed in tenths of a cent per dollar of assessed valuation

Question 68

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
the enactment of a taxing body's budget and sources of money into law

Question 69

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a document conveying to property purchased at a tax sale

Question 70

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a fee or tax on deeds and other documents payable at the time of recordation

Question 71

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a preferential income tax treatment on the sale of an appreciated asset before 1987

Question 72

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a document issued at a tax sale that entitles the purchaser to a deed at a later date if the is not redeemed

Question 73

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
selling price of a home less selling expenses

Question 74

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
an improvement that benefits the public at large and is therefore financed by general property taxes

Question 75

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
the price paid for property;used in calculating income taxes

Question 76

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
sale of an appreciated property structured to spread out the payment of income taxes on the gain

Question 77

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a value placed on a property for the purpose of taxation

Question 78

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
a book that contains the assessed value of each property in the taxing district

Question 79

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
sales price of a property less fix-up costs and sales commissions, closing and other selling costs

Question 80

Choose the one most appropriate answer for each.
a.adjusted sales price
k.front-foot basis
b.ad valorem tax
l.improvement district
c.amount realized
m.installment method
d.appropriation process
n.long-term capital gain
e.assessed value
o.mill rate
f.assessment appeal board
p.public improvement
g.assessment roll
q.special assessments
h.basis
r.tax certificate
i.conveyance tax
s.tax deed
j.documentary tax
t.tax lien
hears complaints from property owners regarding their assessments