© 2013 all rights reserved. chapter 9 taxes and assessments1 new york real estate for brokers, 5 th...
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© 2013 All rights reserved.Chapter 9 Taxes and Assessments 1
New York Real Estate for Brokers, 5th e
By Marcia Darvin SpadaCengage Learning
© 2013 All rights reserved.Chapter 9 Taxes and Assessments 2
Chapter 9
Taxes and Assessments
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Chapter 9 Key TermsAd valorem taxesAppropriationApproved assessing
unitAssessing unitAssessment Assessment rollAssessorBoard of assessment
reviewGrievanceHomestead
In rem legal proceeding
Nonhomestead Special assessmentTaxable status dateTax certiorari
proceedingTax exemptionsTax levyTax lienTax rate
Chapter 9 Taxes and Assessments 3
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Property Taxes
Based on fair market value
Most property subject to assessment and taxation
Exceptions government religious educational charitable
Chapter 9 Taxes and Assessments 4
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Property Tax Exemptions, Deductions, and Refunds
Veterans’
exemption
Veterans’
exemption
New York STAR
New York STAR
DisabilityDisability
Seniorcitizen
exemption
Seniorcitizen
exemption
ExemptionsDeductions
Refunds
ExemptionsDeductions
Refunds
Chapter 9 Taxes and Assessments 5
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Assessed Value
Assessor
Assessment roll
Uniform percentage
Protestingassessments
Property tax assessment involves establishing the market value of each parcel of land to be taxed within the taxing unit
A taxing unit may be a city, town or county
Market value is what a willing buyer will pay a willing seller for the property
Chapter 9 Taxes and Assessments 6
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Residential Assessment Ratio (RAR)The RAR is an indication of the level of
assessment for residential real property in a municipality
Used by homeowners in a:
Board of Assessment Review (BAR) grievance
Small Claims Assessment Review (SCAR) hearing
Chapter 9 Taxes and Assessments 7
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Functions Related to Real Estate of the Tax Assessor۩ Valuing all taxable property -listing it on
the assessment roll۩ Maintaining tax maps۩ Assisting taxpayers with exemptions۩ Maintaining property tax records
Chapter 9 Taxes and Assessments 8
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Equity Issues and Differences in Assessments
Illegal/Legal
Assessments
Reassessment upon Sale
Community wide
reassessment
Old vs. newconstruction
Undeclared improvements
discovered
Relationship ofthe building permit
to reassessment
Equity Issues
Chapter 9 Taxes and Assessments 9
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Protesting Assessments
Grievances
UnequalAssessment/
UnequalAssessment
Ratio
Excessive Assessment-
Full ValueDisagreement
UnlawfulAssessment
Misclassification-Homestead
And Nonhomestead
Classes
Chapter 9 Taxes and Assessments 10
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Small Claims Assessment Review
Residential only
Filing with the countyclerk
Hearing procedure
Types of evidence
Appeal
Protesting commercial
propertyassessments-
certiorari proceedings
Chapter 9 Taxes and Assessments 11
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Tax Rate FormulaTax dollars
required/
Taxable assessed
value
=
Rate
$2 million tax levy/
$40 million taxable
assessed value
=
$5 for each $100 of
taxable assessed
valueChapter 9 Taxes and Assessments 12
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Calculating the Property Tax Bill
Assessed value x tax
rate = annual taxes
$300,000 x .04567
= $13,701
If the assessed value
of property is
$68,000 and the
annual tax paid is
$850, what is the
tax rate?
$850 ÷ $68,000 =
$1.25
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Equalization
Total assessed value (AV)________________________ = Equalization
RateTotal market value (MV)
Chapter 9 Taxes and Assessments 14
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Real Property Tax Liens
Real Property Tax Liens
Administrative tax sale
Tax foreclosure and tax sale
Chapter 9 Taxes and Assessments 15
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Agent’s ResponsibilitiesRead and Interpret a tax bill
Know of any tax exemptions or reductions
Other information regarding the property tax is included in the title search
Chapter 9 Taxes and Assessments 16