Unit 18 - Taxes Affecting Real Estate

Disabled Veterans. A permanent, total disability caused by a service related event entitles such individual to

a 100% exemption from taxes on homestead property

Certiorari proceeding means

a court will review the matter

Lenders are well aware of the dangers of

a homeowner not paying taxes, so a majority of lenders escrow taxes into the house payment

For the property owners who are Florida residents and have qualified for homestead exemption, the property is subject to

a limitation in assessment increases, commonly known as Amendment 10

The Value Adjustment Board is

a local group made up of 3 county commissioners and 2 local school board members, all elected members

If the Value Adjustment Board group agrees with the homeowner who has filed an appeal regarding the assessed value of his property, the board can

change the assessed value, but if the board agrees with the county appraiser, the board rejects the homeowner's request

One $500 homestead exemption include

completely disabled persons who are non-veterans

With regard to the Green Belt law, If additions or improvements are made to the property, these changes will be assessed at market value in the year of

construction . The additional value will be capped the following tax year

One $500 homestead exemption include

disabled

With regards to establishing the Tax Rate, an operating budget is prepared each year by

each tax district

The Green Belt Law taxes agricultural land at a lower rate than the

encroaching cities around the land, and preserves the land for future agricultural use

A tax certificate will expire after 7 years if the certificate holder does not foreclose by that time the property

escheats to the state

Gardens and lawns do not fall under the category of

farm lands for agricultural use

If the Value Adjustment Board and county appraiser have both rejected an appeal of a homeowner's request to lower the property taxes, the homeowner may

file a suit in the courts after he pays taxes under protest

Local governments, cities and counties, depend on real estate taxes to pay is for

fire

Tax certificates, which are not redeemed by their original owner, the owner of the property, by the end of the second year, can be

foreclosed at the request of the certificate holder, which is the bidder

With regard to Federal Income Taxes, the sale of real estate may result in capital gains taxes under certain circumstances. To determine if

gain is taxable, three items must apply

As in any foreclosure, A tax certificate property is sold on the courthouse steps to the

highest bidder and the certificate holder is paid out of the sale

With regard to the Green Belt law, Amendment 10 applies only to property with a

homestead exemption

Disabled Veterans. A disability of 10% or more entitles such veteran to an additional $5,000 worth of exemption. A permanent, total disability caused by a service related event entitles such individual to a 100% exemption from taxes on

homestead property

A list of delinquent real estate taxes is published

in a local paper

A source of local revenue include

income tax

With regards to establishing the Tax Rate, the amount of money needed in the taxing district is determined and the sources of the income are evaluated. Once this is done, the tax district is able to

predict what will be needed in tax money to offset expenses

A homestead exemption may be applied to the

primary residence

Occasionally, a homeowner defaults on the taxes of a property. This is more likely to happen when there is no loan or the loan does not have

principal, interest, taxes, and insurance

P I T I stands for

principal, interest, taxes, and insurance

Without the protection from the Green Belt law, owning farm land and paying taxes would be

prohibitive

When a property is sold, representatives of the property appraiser's also examine

properties that have recently sold to collect data

A source of local revenue include

public utility

With regard to the Green Belt law, all county appraisers must annually classify all property within the county. This stops speculators from

purchasing farm land and paying taxes at a lower rate

If a property owner that is appealing his assessed value of property taxes makes it into court after all other procedure attempts have failed, if the court finds for the homeowner, it will direct the county appraiser to

re-examine the value with the appropriate methods of value

An ad valorem tax is a tax based on the value of

real estate or personal property

The Federal government does not tax

real estate, neither does the state of Florida

With regard to the Green Belt law, Amendment 10 is limited to

residential property only

A source of local revenue include

sales tax

A source of local revenue includes

sales tax, income tax, public utility taxes, and user taxes

The additional $25,000 of possible homestead exemption, does not apply to

school taxes

One requirement for the Green Belt protection is

size, as it relates to specific agricultural use

With regard to the Green Belt law, In 1994, Florida Statutes were amended with amendment 10 to provide

some security for homeowners in the amount the assessed value of property could raise each year

The Federal government does not tax real estate, neither does the

state of Florida

One requirement for the Green Belt protection is

such other factors that may from time to time become applicable

Real estate is accessed for

tax purposes by county appraisers

A source of local revenue include

taxes

User taxes are

taxes imposed on the privilege of using something

With regard to the Green Belt law, the limit is on the assessed value of the property, not the

taxes paid. When the property is sold, the homestead exemption must begin again for Amendment 10 to take place

Real property tax is an ad valorem tax based on

the assessed valuation of the property

Just value is

the fair and reasonable value based on objective valuation methods

Revenue is

the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses

One requirement for the Green Belt protection is

the length of time the land has been so utilized

Unpaid taxes become a tax certificate, which is offered to the public for sale at auction with bids opening at 18% and going down. The successful bidder is the one who is willing to accept

the lowest interest rate on the loan. The certificates are held by the bidder for two years before the bidder can begin foreclosure

One requirement for the Green Belt protection is

the purchase price paid

An ad valorem tax, Latin for according to value, is a tax based on

the value of real estate or personal property

Assessed value is

the value that is used for tax purposes

With regard to the Green Belt law, beginning in 1995, or the year the property received homestead exemption, whichever is later, the property is to be reassessed annually on January 1st. Any change resulting from the re-assessment cannot exceed

three percent of the assessed value of the property for the previous year, or the percentage change in the Consumer Price Index for all Urban consumers, as reported by the United States Department of Labor, Bureau of Labor Statistics

With regard to the Green Belt law, beginning in 1995, or the year the property received homestead exemption, whichever is later, the property is to be reassessed annually on January 1st. Any change resulting from the re-assessment cannot exceed

three percent of the assessed value of the property for the previous year, or the percentage change in the Consumer Price Index for all Urban consumers, as reported by the United States Department of Labor, Bureau of Labor Statistics. Whichever of these is lower will be the number the country appraiser must use

A source of local revenue include

user taxes

One requirement for the Green Belt protection is

whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices, including, without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices

One requirement for the Green Belt protection is

whether such land is under lease and, if so, the effective length, terms, and conditions of the lease

One requirement for the Green Belt protection is

whether the use has been continuous

One $500 homestead exemption include

widows and widowers, not remarried

Disabled Veterans. A disability of 10% or more entitles such veteran to an additional

$5,000 worth of exemption

The constitution of Florida allows up to _____ for the homeowner's homestead exemption

$50,000

With regard to Federal Income Taxes, the sale of real estate may result in

capital gains taxes under certain circumstances. To determine if gain is taxable, three items must apply

Unpaid taxes become a tax certificate, which is offered to the public for sale at auction with bids opening at

18% and going down. The successful bidder is the one who is willing to accept the lowest interest rate on the loan. The certificates are held by the bidder for two years before the bidder can begin foreclosure

If a homeowner wishes to appeal the assessed value of his property, determined by the local assessor's office, the homeowner should seek an adjustment within _____ days from the county property appraiser, or his representative

25

With regards to limit increases in the assessed value, once a homestead is established and no marital interest is transferred, the homeowner is protected by the

3% annual cap

Save Our Homes limits increases in the assessed value to no more than

3% or the Consumer Price Index, whichever is less

A tax certificate will expire after _____ years if the certificate holder does not foreclose by that time and the property escheats to the state

7

Real estate taxes derived from assessed value are called

Ad Valorem taxes

A homestead property owned by a quadriplegic, and certain other individuals in a wheelchair, is exempt from

certain county taxes

Once an assessed value or a property has been established and the homeowner has been notified, the homeowner has

certain rights of appeal of the assessed value

Permanent Florida residents, even if they do not live in Florida all year are entitled to claim a

Florida Homestead Exemption. The exemption must be filed by March 1st of each year and it is renewed every year thereafter

Florida taxes are due and payable November 1st each year and they are delinquent if not paid by

April 1st of the following year

C P I stands for

Consumer Price Index

With regard to the Green Belt law, if there is a change in ownership, the property must

be re-assessed as of January 1st of the year following a change of ownership. Any new homestead exemption would begin at that time with the above rules taking place after the homestead is granted

One type of real estate property exemption is called

Exempt or Partially Exempt properties. These are properties such as churches and non-profit organizations that own properties. The county appraiser actually determines the Taxable Value of the property but the owners of the property are not required to pay. In other words, the Exempt properties are subject to taxation, but the owner is released from the obligation

In order to preserve Florida's farming community, the legislature in 1959 passed the

Green Belt Law

Example of a Florida Homestead exemption

If a property is assessed at $250,000, it will only be taxed as a $200,000 residence If the homeowner qualifies for the full $50,000 exemption. The homestead exemption amount is actually a base exemption of $25,000, plus as much as an additional 25,000. There is a graduated scale for the second $25,000 based on the value of the property. All owners May Not be entitled to the full $50,000 exemption

One type of real estate property exemption is called

Immune Property. This is property that the county will not be taxing at all, including federal and state buildings, municipal buildings and airports, etc.

No tax exemptions are automatic. They must be applied for in person initially between

January 1st and March 1st. Renewal is subject to county regulations

Florida taxes are due and payable

November 1st each year and they are delinquent if not paid by April 1st of the following year

If a homeowner appeals the assessed value of his property and the appeal has been rejected by the county appraiser, the homeowner may file an appeal with the

Value Adjustment Board , a local group made up of 3 county commissioners and 2 local school board members, all elected members

The words, Ad Valorem, are Latin for

according to valuation

When the reduced valuation is applied to tax rates, the homeowner enjoys a consequent reduction in

ad valorem property taxes

An assessment is

an official valuation of real property for tax purposes based on appraisals by the local assessor's office

When a property is sold, representatives of the property appraiser's office go into the community to

assess property and collect data

If a property has been sold in the previous year, the sale price is considered in

assessing the value of the property

With regards to establishing the Tax Rate, the amount of real estate taxes paid to a tax district comes from

its tax base , all the property that is taxed within the tax district area

Florida Statutes require that property be assessed at

just value

One $500 homestead exemption include

legally blind individuals

Local governments, cities and counties, depend on real estate taxes to pay is for

libraries

Age 65 and older: Certain counties have an ordinance allowed by Florida law, which gives an additional $50,000 exemption to residents who are 65 or older with a household income of Not more than $20,000 . The county has a choice with regard to passing such ordinance and the $20,000 income amount may be adjusted for inflation. This is known as the

local option for age 65 and older

Age 65 and older: Certain counties have an ordinance allowed by Florida law, which gives an additional $50,000 exemption to residents who are 65 or older with a household income of Not more than $20,000. The county has a choice with regard to passing such ordinance and the $20,000 income amount may be adjusted for inflation. This is known as the

local option for age 65 and older

If a property owner that is appealing his assessed value of property taxes makes it into court after all other procedure attempts have failed, if the court finds for the county appraiser, the homeowner

loses his appeal

If a homeowner appeals the assessed value of his property, determined by the local assessor's office, and the appraiser is in the homeowner's favor, the appraiser has the right to

make a change and lower the assessed value

Local governments, cities and counties, depend on real estate taxes to pay is for

municipal buildings

Local governments, cities and counties, depend on real estate taxes to pay is for

parks

The local governments, cities and counties, depend on real estate taxes to

pay for local necessities such as fire and police protection, libraries, parks and municipal buildings

The owner of a property may redeem his property by

paying all taxes, costs and interest to the county within a two year period

Local governments, cities and counties, depend on real estate taxes to pay is for

police protection