CHAPTER 18- Taxes Affecting Real Estate

A home is assessed for $185,000. The tax rate is 21.5 mills including a city millage of 7 mills, county mills totaling 6.5 mills and school millage of 8 mills. The homeowner is eligible for the standard homestead tax exemption. What is the amount of property taxes due? (a) $2,902.50 (b) $3,102.50 (c) $3,440.00 (d) $3,977.50

(a) $2,902.50

A homeowner disagrees with the assessment of his property. What is the first step in the process to attain a lower assessment? (a) Contact the county property appraiser. (b) File an appeal with the value adjustment board. (c) Contact the mayor's office. (d) File an appeal with the district court of appeals.

(a) Contact the county property appraiser.

Which statement best describes the interest that is payable on tax certificates? (a) It is based on the lowest bid received. (b) It is never lower than 18%. (c) It is negotiable between property owner and bidder. (d) It is established by law.

(a) It is based on the lowest bid received.

Individuals who own their primary residence, are permitted certain income tax deductions. Which of the following is a permitted tax deduction? (a) Points paid to purchase or refinance (b) Mortgage payments (c) Maintenance expenses (d) Utility bills

(a) Points paid to purchase or refinance

Who can appraise property for purposes of taxation? (a) The county property appraiser (b) The local school board (c) The city in which the property is located (d) Special taxing districts

(a) The county property appraiser

According to Florida's Save Our Homes Act, the assessed value of homestead property cannot be increased in any one year by more than which of the following? (a) The lesser of 3% or the CPI (b) The greater of 3% or the CPI (c) 10 mills (d) An amount determined by the county property appraiser

(a) The lesser of 3% or the CPI

Which of the following statements best describes the Greenbelt Laws? (a) They limit the assessed value on agricultural land in or near urban areas. (b) They help to raise the tax base. (c) They provide for the best use of land. (d) They prevent land from being used for development.

(a) They limit the assessed value on agricultural land in or near urban areas.

Complete the statement. Special assessment liens: (a) are based upon improvements that add value to the property. (b) are an ad valorem tax. (c) must be based on the value of the assessed property. (d) are a form of a general lien, that apply to any property owned by the taxpayer.

(a) are based upon improvements that add value to the property.

Complete the statement. If a property owner fails to pay property taxes, the resulting lien is ________. (a) held by the county until the certificate is sold. (b) owned by the county property appraiser. (c) foreclosed on by the sheriff. (d) sold at public auction for the highest interest rate.

(a) held by the county until the certificate is sold.

The assessed value for a residence is $70,000. The homeowner qualifies for homestead tax exemption. What is the total amount of exemption? (a) $50,000 (b) $45,000 (c) $25,000 (d) $20,000

(b) $45,000

Jane is a widow who has lived in her home in Clearwater for the past 15 years. Although she is totally blind, she continues to live alone. The city tax rate is 5.5 mills, the county rate is 7.5 mills and the school board rate 6.5 mills. Her home is assessed for $86,000 for tax purposes. If she files for all allowable exemptions, what is the amount of her tax levy? (a) $682.50 (b) $845.00 (c) $864.50 (d) $1,677.00

(b) $845.00

The city is paving the street in front of Bill's home. The cost of the paving is estimated to be $18.50 per lineal foot, and the city has agreed to pay 20% of the cost. If Bill has a lot measuring 115 feet by 150 feet, what is Bill's share of the assessment? (a) $425.40 (b) $851.00 (c) $1,110.00 (d) $1,702.00

(b) $851.00

What must an individual do to qualify for a homestead tax exemption? (a) Own the property. (b) Own and use the home as a primary residence. (c) File for a homestead tax exemption by March 31st. (d) Live in his or her principal residence for the entire year.

(b) Own and use the home as a primary residence.

Special assessments are used to pay for which of the following? (a) School bonds (b) Sidewalks, sewers, and other public improvements that benefit the property owner (c) City services in excess of operating revenues (d) New public structures such as sport facilities

(b) Sidewalks, sewers, and other public improvements that benefit the property owner

A buyer recently purchased a home from a seller who owned and lived in the home for several years. The seller had qualified for and filed for all allowable tax exemptions. Which statement is correct? (a) The buyer will likely pay less taxes than the seller if he/she files for Homestead exemption. (b) The buyer's taxes will most likely be higher than the seller's because the limitation on taxes created by the Save Our Homes Act will be eliminated. (c) The buyer will not be able to file for his homestead exemption until he has owned the home for a minimum of 12 months. (d) The seller will be subject to federal capital gains taxes on any profit derived from the sale.

(b) The buyer's taxes will most likely be higher than the seller's because the limitation on taxes created by the Save Our Homes Act will be eliminated.

Which expenses may be deducted by a homeowner, regarding his or her principal residence? (a) real property taxes, insurance, and major repairs. (b) mortgage interest and real property taxes. (c) real property taxes, homeowner association assessments, and mortgage payments (d) property insurance, real property taxes, and mortgage interest

(b) mortgage interest and real property taxes.

How is 10 mills expressed as a decimal? (a) 1.00 (b) .100 (c) .010 (d) .001

(c) .010

Which of the following statements regarding exempt and immune property is correct? (a) A church is an exempt property that would not be assessed for tax purposes. (b) Nonprofit organizations engaged in charitable activities are considered immune property that would be totally exempt from payment of property taxes. (c) A county court house is immune property that would not be assessed or subject to taxation. (d) Government-owned properties that are leased to private businesses are exempt from payment of property taxes.

(c) A county court house is immune property that would not be assessed or subject to taxation.

What does the county property appraiser determine? (a) Tax rate (b) Market value (c) Assessed value (d) Just value

(c) Assessed value

To which organization is real estate tax most important? (a) Federal government (b) State government (c) Local government (d) Local nonprofit organizations

(c) Local government

Homeowners who file itemized tax returns are allowed deductions for which of the following items? (a) Real estate taxes and repairs (b) Hazard insurance and depreciation (c) Real estate taxes and mortgage interest (d) Mortgage interest and utilities

(c) Real estate taxes and mortgage interest

Complete the statement. In Florida, the owner of a homestead property located outside the city limits would be required to pay property taxes levied ________. (a) on the total assessed value of the property. (b) by the nearest city. (c) by the county and school board. (d) by the state of Florida.

(c) by the county and school board.

The street in front of Isabel's home is being resurfaced. Cost is $60 per front foot and the city is covering 40% of the cost. Isabel's lot measures 90 feet by 100 feet. What is Isabel's share of the improvement? (a) $5,400 (b) $3,240 (c) $2,160 (d) $1,620

(d) $1,620

What is the total Homestead exemption that a 20% disabled vet would receive in Florida on a property that was valued at $80,000? (a) $25,000 (b) $30,000 (c) $50,000 (d) $55,000

(d) $55,000

What discount percentage is given to property owners who pay their real estate tax bill in November? (a) 1%. (b) 2%. (c) 3%. (d) 4%.

(d) 4%.

Which statement is correct with respect to homeowner insurance coverage? (a) All losses are covered. (b) Flood losses are limited to $25,000. (c) Personal property is not covered. (d) Homeowners with multiple policies will not receive the full amount of their loss from each insurer.

(d) Homeowners with multiple policies will not receive the full amount of their loss from each insurer.

Regan and Shawn recently purchased a new home and wish to file for the homestead tax exemption. All of the following statements are correct, EXCEPT: (a) The filing period for the exemption is January 1st through March 1st. (b) In order to qualify for the exemption, the property must be occupied as the principal residence. (c) If the homeowner is totally and permanently disabled, then he/she may be entitled to a total exemption. (d) The property will now be immune from taxation.

(d) The property will now be immune from taxation.

Which statement would be correct regarding a single homeowner who sold a principal residence and itemized deductions on his or her federal income tax return? (a) Any capital gain realized from the sale is taxable at a reduced rate. (b) All capital gain would be subject to tax at the taxpayer's marginal rate. (c) A loss of up to $3,000 on the sale may be deducted from adjusted income. (d) Up to $250,000 may be excluded from taxation if the taxpayer had occupied the residence for at least 2 of the past 5 years.

(d) Up to $250,000 may be excluded from taxation if the taxpayer had occupied the residence for at least 2 of the past 5 years.