© 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

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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

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Property Taxes

Based on fair market value

Most property subject to assessment and taxation

Exceptions government religious educational charitable

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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

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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

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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

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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 15 Taxes and Assessments 8

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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) ÷ Total market value (MV) = Equalization Rate

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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

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Grievances

Grievances

UnequalAssessment/

UnequalAssessment

Ratio

Excessive Assessment-

Full ValueDisagreement

UnlawfulAssessment

Misclassification-Homestead

And Nonhomestead

Classes

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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

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Real Property Tax Liens

Real property tax Liens

Administrative tax sale

Tax foreclosure and tax sale

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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

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