CH 03 - Property Taxation & Assessment

The current market value of a property is $135,000. For tax purposes, it is assessed at 60% of market value. The tax rate is $2.45 per $100 of assessed value. What is the annual tax liability?

• $1,190.40

• $1,323.75

• $1,984.50

• $3,307.25

Which of the following liens generally holds first priority?

• mortgage lien

• purchase money lien

• ad valorem real estate tax lien

• federal income tax lien

What will be the amount of tax payable when the property's original assessed value is $185,000 then a 10% horizontal adjustment is made to all assessed values and the tax rate is 40 mills in a community?

• $4,625

• $5,087

• $7,400

• $8,140

Charges levied on a property owner and limited to those living in a particular neighborhood to pay for the installation of sewer and water lines are:

• ad valorem taxes

• general property taxes

• special excise taxes

• special assessments

The ad valorem property tax rates may be adjusted every:

• year

• two years

• four years

• eight years

The NC Machinery Act requires a reappraisal of the property every

• year

• two years

• four years

• eight years

horizontal "across the board" adjustments can be made every

• year

• two years

• four years

• eight years

Jack bought a home for $125,000 with an ad valorem tax assessed value of $130,000. The following year, a horizontal adjustment of a 15% increase in assessed value occurred. If the new tax rate is $1.678 per $100 of assessed value, what are the annual taxes?

• $2,097.60

• $2,508.61

• $2,181.40

• $2,412.13

What is the monthly tax liability on a property assessed at $133,000 if the published tax rate is $1.50 per $100 of assessed value? The sales price of the property was $150,500. The vacancy rate in the area is 6%. The market capitalization rate is 8%.

• $1,995

• $166.25

• $1,950

• $3,234

What is the assessed value of a house if the tax rate is $1.30 per $100 of value and the owner's annual taxes are $1,599?

• $12,300

• $32,000

• $123,000

• $132,000