Leason 13 Taxes And Assessments Flashcards
Assessed value
A valuation placed upon property by a public officer or a board, as a basis for taxation
Why raise taxes?
Please Department, fire department, libraries, etc.
Assessments
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer
How is tax rate determined?
Municipality:
100,000 parcels
Municipality budget required:
10,000,000
Tax rate:
100,000/10,000,000=1%
Equalization rate formula
Total assessed value of municipality
—————-=equalization rate
Total market value if municipality
Find assessed value
Equalization rate 1%
Assessment $1,000
Assessed value:
$1,000/1%=$100,000
Is your real estate over assessed?
Market value (by real estate appraiser) X state equalization rate = appraised assessment (this is what assessment should be)
Actual assessment (as it appears on records) - Appraised assessment (this insects assessment should be) = how much assessment should be lowered
Assessing unit
City, county, town or village with the authority to value real property for purposes of taxation.
Assessment ratio
Equalization rate
Why do assessments differ?
- Different people assessing
2. The people create equalization rate may not be the same people.
What is market value?
According to the appraisal Institute, the appraisal foundation, USPAP (uniform standards of professional appraisal practice) the market value is the most probable selling price and I will then viral would pay to willing seller with both parties in Julian form in either pretty under duress.
Approved assessing unit
The city or town which is been certified by the state board of real property tax service to have completed a evaluation updated in conformance with its rules and regulations
Special assessment districts
The geographic area in which the market value of real estate is enhanced into the influence of public improvement in which is tax is appointed to recover the cost of the public improvement
Assessment review board
Independent tribunal established to hear assessment appeals
Assessment Review Board
– An independent tribunal established to hear assessment appeals.
