real estate ch.4: gov't controls & real estate markets

A property owner who owes 8 mills in school taxes, 10 mills in city taxes, and 5 mills in county taxes and who qualifies for a $50,000 homestead exemption would owe how much tax on a property assessed at $180,000?

2990 (asset-exemption) = taxable value total mill rate/1000

Use the following data to compute the property tax rate for an example taxing authority:Budget: $1,000,000 Nontax revenue: $100,000Total tax base: $100,000,000 Exempt property: $$10,000,000Answer _______percent, or ________-mills.

1, 10

An example of a "holdout" monopolist is:

A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property

An example of market failure due to externalities is:

A water bottling plant consumes so much well water that it lowers the water table on neighboring land

Which of these possible zoning categories would exemplify the idea of form-based zoning?

Free standing, single occupant structures

An example of incomplete construction information potentially contributing to market failure is

Inability to examine roof nails for wind resistance once a roof is complete Inability to examine plumbing under a concrete slab

True statements about the legality of zoning include

It must be based on a comprehensive plan it must provide for a range of housing types and income levels it was upheld as a use of police power by the USSC in Euclid v. Ambler Realty, 1922

Failure to pay property taxes eventually leads to foreclosure sale for all types of property except:

No exceptions for taxable properties

Which of these types of property generally is exempt from property taxation?

Private school

An example of negative externalities is:

Reflective glass or roof material deflects light and heat onto adjacent properties

Which is the clearest example of a positive externality?

The effect on a neighborhood from good lawn maintenance

True statements about special assessments include:

They are used to fund public improvements affecting a limited set of properties. Common applications are for sidewalks, street improvements, sewer extensions, etc. The assessments often are proportional to front footage of the lots involved.

Which of these are natural monopolies?

Water company Electrical utility

Components that typically are in a community comprehensive plan include

a map of various land uses within the community plans for schools and other public facilities allocation of land to various uses

Aspects of subdivision regulations include requirements for

adequate provision of water and sewers coordination of streets with surrounding subdivisions adequate quality of streets

Traditional land use controls (pre-1970) include:

all three: zoning, building codes, and subdivision regulations.

The source from which property tax revenue can be obtained is the value of the total tax ______less the value of property that is _____from property taxes.

base, exempt

Building codes

began to be adopted by US communities around 1900 originally were prompted primarily by the threat of fire were the earliest form of police power regulation of land use

Property taxes are a major source of revenue for:

both local governments and school districts.

In zoning a non-conforming use

cannot change in use or structure cannot be discontinued more than a limited time must have existed before the zoning was enacted

Generally, higher property taxes on a property tend to lower its value, while more resulting community services for the property tend to increase its value. In short, the effects of the property tax are captured or ____into the value of a property.

capitalized

Three forms of traditional land use controls are building ___,____ ,___ and regulations.

codes, zoning, subdivision

An aggressive planning concept to control the location of development, limits development until a minimum standard of public services and infrastructure is in place, provided by the land developers. This is referred as a ______ requirement.

concurrency

The legal procedure through which eminent domain is exercised is called__

condemnation

common examples of partial exemptions for property taxes include exemptions for

disabled persons historic property widows veterans

In contrast to property taxes, which are based on property value, special assessments are based more on equally ___-the total cost of improvements.

distributing

The planning or zoning commission is appointed as an advisory board by the

elected governing body

The authority for approving site plans for local projects ultimately rests with the:

elected governing commission or council.

The theoretic idea of impact fees is that they can "internalize"

externalities

True or false: developers normally regard the site plan review process as a friendly and predictable procedure.

false; Just the opposite; surrounding land owners commonly resist new development.

Failure to pay property taxes ultimately can lead to ___and sale of the property at public auction.

foreclosure

A new form of land use control that replaces zoning by land use type with zoning by building/development types is:

form-based zoning

Features of the "revolution in land use controls" included a shift

from little interest in land use controls to broadly requiring land use controls from a perception of unlimited space and environment to a concept of "spaceship earth"

Characteristics of building codes include

generally are regional rather than strictly local address safety, health and sanitation continue to change with changing technology

In condemnation proceedings for eminent domain the amount of compensation to the owner must be based on _______and _______use of the property at the time it is condemned.

highest, best

The largest partial exemption for property taxes is the ____exemption.

homestead

Examples of market failure due to incomplete information about construction quality include

inability to examine plumbing under a concrete slab floor non-visible electrical systems once walls are closed in

Externalities in land use include all except:

inability to judge the quality of a structure, once built.

Proposed changes in a zoning ordinance must

initially be presented to a planning or zoning commission go before the elected officials for final judgment or ratification

If government activity or government restrictions reduce the value of a private property sufficiently, it is possible for the property owner to sue the government to force the government to acquire the property through eminent domain. This process is known as ______.

inverse condemnation

Form-based zoning

is the most recent alternative to conventional zoning replaces zoning of land use with zoning of development configuration or character

In condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called _______compensation.

just

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

large numbers of student rental households in the neighborhood

A site plan review board will

make recommendations to the elected officials review site plans for apartments or other commercial or industrial sites review proposed subdivisions

In most states, the computation of taxable property value must derive from _____value.

market

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and ______.

mixed use

Types of property that commonly are exempt from property taxes include

places of worship schools and universities hospitals other property of religious organizations

Modern alternatives (generally adopted after 1970) to traditional land use controls include

planned unit development impact fees performance standards form-based zoning

Zoning is an exercise of which type of general limitation on property rights?

police power

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general is known as:

police powers

The success of land owners in the U.S. in using inverse condemnation to obtain relief from severe regulation that devalues their property is:

poor but recently improved

Eminent domain is the right of government to acquire _____property, without the owner's _______-, for public use, in exchange for _____-.

private, consent, compensation

A comprehensive plan usually deals with which of the following elements?

public services natural resources population land uses

The narrowest notion of eminent domain limits its scope to "public use," that is, for ______ facilities only, while the more common and broader view allows eminent domain to be use for "public purpose," meaning any use of clear public____ .

public, benefit

The most accurate conclusion about the regressivity of the property tax is that it is:

regressive, but when benefits are considered, the net result may be fair.

In large measure, rather than using impact fees as a means of correcting externalities, local governments have tended to use the fees purely as a source of _____.

revenue

Police power is the power of any government to regulate in the interest of the general health, ____, and _____of the citizens

safety, welfare

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibly and efficiently than the approach of conventional zoning, which is of land uses.

separation

Three types of traditional land use controls are:

subdivision regulations building codes zoning

To find the property tax amount for a property multiply the taxable value by the total_______

tax rate

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher ______.

tax revenues

Events that triggered the "revolution in land use controls" included

the Love Canal disaster the environmental movement publication of Rachel Carson's Silent Spring

An example of market failure due to incomplete information is:

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard.

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to

the local government

Perceived threats to destabilize a single family, owner oriented neighborhood have included

the presence of apartments or commercial activity in the neighborhood

New urbanism is a term used to describe:

the theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented.

Three conditions for a zoning variance are

the variance must not change the character of the neighborhood the owner must show true hardship the condition must be unique to the particular lot

Property tax rates typically are stated not in percent but in mills, which are dollars per ____ dollars of value.

thousand

performance standards have been implemented for a wide variety of externalities in land use, including

traffic generation by a land use air quality effects from a land use storm runoff

Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development.

true

An example of conflicting notions of best practice in urban planning is

uniform residential densities vs mixed residential densities grid street patterns vs cul-de-sac streets

The property tax is a form of ad_____ tax that is the primary source of revenue for almost all forms of local government in the United States.

valorem

Zoning was determined by the United States Supreme Court to be a legitimate use of police powers to regulate land use in the interest of health, safety and welfare in:

village of Euclid v. Ambler Realty, 1926