new york real estate for salespersons, 5 th e
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© 2013 All rights reserved.Chapter 15 Taxes and Assessments 1
New York Real Estate for Salespersons, 5th e
By Marcia Darvin SpadaCengage Learning
© 2013 All rights reserved.Chapter 15 Taxes and Assessments 2
Chapter 15
Taxes and Assessments
© 2013 All rights reserved.
Chapter 15 Key TermsAd valorem taxesAppropriationAssessed valueAssessing
unit/approved assessing unit
AssessmentBoard of Assessment
Review
Homestead/Nonhomestead In remSpecial
assessment/special assessment districts
Tax levyTax lienTax rate
Chapter 15 Taxes and Assessments 3
© 2013 All rights reserved.
Property Taxes
Based on fair market value
Most property subject to assessment and taxation
Exceptions government religious educational charitable
Chapter 15 Taxes and Assessments 4
© 2013 All rights reserved.
Assessed Value
Assessor
Assessment roll
Uniform percentage
Protestingassessments
Property tax assessment establishes 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
Chapter 15 Taxes and Assessments 5
© 2013 All rights reserved.
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 15 Taxes and Assessments 6
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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 15 Taxes and Assessments 7
© 2013 All rights reserved.
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 15 Taxes and Assessments 8
© 2013 All rights reserved.Chapter 15 Taxes and Assessments 9
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
© 2013 All rights reserved.
Equalization
Total assessed value (AV) ÷ Total market value (MV) = Equalization Rate
Chapter 15 Taxes and Assessments 10
© 2013 All rights reserved.
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 15 Taxes and Assessments 11
© 2013 All rights reserved.
Grievances
Grievances
UnequalAssessment/
UnequalAssessment
Ratio
Excessive Assessment-
Full ValueDisagreement
UnlawfulAssessment
Misclassification-Homestead
And Nonhomestead
Classes
Chapter 15 Taxes and Assessments 12
© 2013 All rights reserved.
Small Claims Assessment Review
Residential Only
Filing with the countyclerk
Hearing procedure
Types of evidence
Appeal
Protesting commercial
propertyassessments-
certiorari proceedings
Chapter 15 Taxes and Assessments 13
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Real Property Tax Liens
Real property tax Liens
Administrative tax sale
Tax foreclosure and tax sale
Chapter 15 Taxes and Assessments 14
© 2013 All rights reserved.
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 15 Taxes and Assessments 15
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