Real Estate Exam review on taxes

Property taxes for current year are payable/due. A. Jan 1 B. March 1 C. April 1 D. Nov 1

D. November 1 of each year, property taxes are payable/due, but you have until April 1 of following year to pay without getting into trouble.

All real property assessments must be updated ____________. A. monthly B. semi annually C. annually

C. annually

The surviving spouse of a veteran who died while on active duty is entitled to a _______________ property tax deduction on homesteaded property. A. 100% B. 50% c. 25%

A. 100%

When are property taxes assessed? A. Jan 1 B. March 1 C. April 1

A. Jan 1, Tax year begins and property taxes are assessed.

A property owner has 25 days to protest the assessed value to the __________ ________________ ______________. A. Value Adjustment Board B. IRS

A. Value Adjustment Board

The county property appraiser determines the _____________ _________ of the properties within the county. A. assessed value B. tax rate

A. assessed value

_________________________ is determined by beginning with assessed value and subtracting appropriate exemptions. A. Taxable value B. homestead exemption

A. taxable value

When do property taxes for previous year become delinquent? A. Jan 1, B. April 1, C. Sept 1,

B. April 1, If property taxes are not paid by April 1 each year, they will be considered delinquent.

Curent tax year ends. A. Jan 1 B. Dec 1

B. December 1, current tax season ends and new assessments will be done in January, because assessments are done annually. Residents then have until March 1, to file homestead exemption if they get that exemption.

_________________________ properties are city, county state and federal government properties that are not assessed and are NOT subject to taxation. A. Special assessment B. Immune C. Exempt

B. Immune ........real property that is owned by a unit of government and is not subject to taxation. (this would not be exempt, because exempt is for churches and non profit organizations)

What is the deadline to file your homestead exemption? A. Jan 1 B. March 1 C. Nov 1

B. March 1 Tax exemption filing period ends.

A veteran who is at least 10% disabled by misfortune or during wartime service is entitled to an additional ____________ deduction from the assessed value of homesteaded property. A. $500.00 B. $1000.00 C. $5000.00

C. $5000.00

First time applicants for homestead exemption, must file their application with the county property appraisers office on or before ________________________. A. Feb 1 B. April 15 C. March 1

C. March 1

Homeowners are entitled to a $__________ homestead exemption from the assessed value of he home for city, county and school board taxes. A. $5000.00 B $10,000.00 C. 20,000.00 D. $25,000.00

D. $25,000.00

The fair and reasonable value based on objective valuation methods.

Just value

Property taxes: Tax year begins Jan 1, the property is assessed. You can now file tax exempt. March 1, filing period ends to file your tax exemption for that year. November 1, property taxes are payable/due for current year. (you have tip April 1 of next year to pay.) (after) April 1, Taxes for previous year were due in November, but are considered delinquent if not paid by April 1, of following year. (property taxes for previous year become delinquent)

Read only to see when property taxes are assessed, when they are due and when they are considered late.

Once an assessed value has been placed on a property, the owner must be informed. A Notice of Proposed Property Taxes is mailed to the property owner at the address on record. This notice is called _______________________________.

TRIM (truth in millage) notice

DO NOT discuss property taxes with prospective buyers.

When homestead property is sold, it is assessed at "just value" as of Jan 1. of the year after a change of ownership. The assessed value of a homestead property may significantly increase after a change in ownership if the previous owners lived in the home a number of years and the property in the area has experienced a strong appreciation.

according to the value of the property; in proportion to worth.

ad valorem taxes Real estate taxes (property taxes) are ad valorem taxes, based according to the value of the property.

worth established for each unit of real property for tax purposes by a county property appraiser.

assessed value The county property appraiser assesses all properties within the county and this is their assessed value.

_________________ provides the bulk of local government revenues in Florida. They account for a large portion of the revenue needed to provide law enforcement, fire protection and other services.

property taxes

**READ** Any property owner is entitled to protest a property assessment, but not every protest will be successful. For example, an owner of a home on a standard lot in a large, completely developed subdivisions who complains that the assessment of a lot was too high will have little hope of getting the assessment changed. If the assessment of the lot were changed, all owners of similar lots could protest their assessments.

**READ** The same homeowner might have a better chance of obtaining a lowered assessment if the evidence indicates the house was assessed at a value greater than justified.

Protest Procedure When a Florida property owner feels the assessed value is inaccurate or does not reflect fair market value, the owner can use the following 3 steps protest procedure. (tax appeal).......... Learn these in order.

1. The first step is to seek an adjustment by contacting the county property appraisers office. If the arguments of the property owner are valid, and have a basis in fact, the county property appraiser is authorized to make a change and lower the assessed value. 2. If the property owners request for adjustment is rejected, the owner may file an appeal (petition) with the VALUE ADJUSTMENT BOARD. A property owner is allowed 25 days after the Notice of Proposed Property Taxes (TRIM notice) is mailed to file an assessment appeal. If the board agrees with the taxpayer that the assessed value is too high, the board has the authority to change the assessment. If the board decides the assessment was correct, the board will reject the taxpayers request. 3. The final step available to the property owner seeking a change in assessed value is litigation in the courts. The tax payer must pay the taxes under protest and file a suit ( a certiorari proceeding, meaning a review of the matter by the courts). The homeowners petition must be filed within the statutory period (chapter 194 F.S.) The court can not assign an assessed value to a property, It may however, specify the methods and procedures that the property appraiser should use in reassessing the property. If the judge agrees with original assessed amount, the homeowner has used all steps available under the protest process, other than appeal to a higher court.

**READ** Every fiscal year, each of the primary tax districts (city, county and school board) prepares an operating budget for the next fiscal year. With this budget in hand, they have to figure out where they are going to get the money from to fund this budget for the year. They have to be sure they have sufficient revenue to pay the expenses. Before real estate is calculated, they look at other places to get the funds. Each tax district is different, but funds can come from....federal grants, municipal owned utilities, fines paid in courts, parking meter income, fees from occupational licenses, and tax refunds are a few ways to get income. With a reasonable estimate of the revenue that can come from non property tax sources, a tax district is able to predict the amount of money needed from property taxes. The amount of property taxes paid to a tax district must come from its tax base.

A "tax base" is the total assessed value of all taxable property in the tax district.

Homeowners are entitled to an additional $___________ exemption to city and county taxes (but not school board) if the properties assessed value is more than $75,000.00. A. $25,000.00 B. $26,000.00 C. $30,000.00

A $25,000.00

Real estate property taxes are _____________ _____________ taxes. A. adjusted basis B. ad valorem C. capital gain

B. ad valorem

The Florida courts have interpreted ______________ value to be ______________ value. A. special value to be taxable value B. Just value to be market value

B. just value, market value

Real estate property tax revenue is of primary importance to __________________ government. A. brokers B. local government

B. local government

_________________________ properties include property belonging to churches and non profit organizations. A. Homestead B. Exempt

Exempt...... properties that have been decreed to be excluded from taxation or claim by others.

**READ** Florida residents who hold title to a home in Florida and use the home as their primary residence may establish their residence as a homestead. Floridians who hoe stead their residents receive a homestead exemption which reduces the amount of property taxes owed. A person who holds a title to more than one home in the state of Florida, may homestead only ONE residence.

For Homestead exemption, applicants MUST reside in the home and have legal title of the property as of Jan 1 to be eligible to file for the homestead exemption tax.