Arizona Property Taxes

Which two of the following items are used as the basis for calculating a property's real estate tax?
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Terms in this set (58)
Which two of the following items are used as the basis for calculating a property's real estate tax?
assessed value and tax rate
What's the formula used to calculate general property tax?
Assessed value x tax rate
A percentage of market value; the amount of property value to which the tax rate is applied
assessed value
Means "according to value" in Latin; the real property tax is based on the fair market value of real property
ad valorem
Determined by the budgetary needs of local government, and used, along with the assessed value, to calculate the amount of real property tax
Tax rate
Number assigned to each plot of land by a county tax assessor
Assessor parcel number
If the market value of a property increases, its tax-assessed value will also increase.
true
Ad valorem taxes are levied according to a property's assessed value.
true
Assessed value is only a percentage of a property's probable sales price.
true
Property taxes are easy to conceal.
no
The value of the underlying property remains relatively steady.yesPeople tend to pay their property taxes.yesProperty taxes are paid by a wide section of the community (residential, industrial, commercial, agricultural, utilities, etc.); therefore, the tax associated with property taxes is relatively stable and a high-revenue generator.trueThere are no administrative costs associated with property tax collection.falseAn Arizona home's assessed value should equal the amount it would sell for on the market.falseEach county in Arizona has its own property tax assessor.trueArizona property taxes are paid twice a year.trueArizona recognizes five property classifications.falseProperty taxes are paid twice a year. The first half of a year's property taxes are due by October 1. They are considered delinquent by five p.m., November 1 (if the outstanding amount is more than $100). Final delinquent notices are sent on December 1. The second half is due by March 1 of the following year. They're considered delinquent if they're not postmarked by May 1. Delinquent notices are sent on June 1. January 1 is the property valuation date for the following year. In February, county assessors mail that year's notices of value to taxpayers.thats all folksThe income from what reliable source benefits the entire community by funding essential services and public works?property taxesHow does Arizona determine the property tax rate for a given property?Add the primary and secondary tax ratesProperty tax liens take priority over all other liens except state liens or encumbrances.trueA lien attaches to the person who is delinquent on property taxes.falseProperty liens attach on Dec 31.falseProperty tax liens can be removed when a buyer obtains title to the property at a tax sale.trueVictoria had the interior of her condo painted a year after she bought it by using a conventional loan. She was highly dissatisfied with the work and refused to pay the painter, who then filed a mechanic's lien against her. Since then, Victoria's lost her job and hasn't been able to pay the mortgage or property taxes for almost a year. Now the home is being foreclosed on. What's the lien priority in this situation?Property tax lien First First mortgage Second Mechanic's lien ThirdWhat happens to any leftover money from a foreclosure, after all liens are paid off?It's used to pay the expenses of the sale.Generally speaking, ______ liens have priority over others.earlierIn Arizona, which of the following types of liens has the highest priority?Tax liensWhich of the following is NOT a way to remove a tax lien from a property?Selling the property after the lien has been in effect for at least three years.Randall purchased a home in Scottsdale without realizing that the previous owners hadn't paid their property taxes in more than a year. What is likely to happen to Randall now that he is the new owner?A foreclosure may be triggered if the lien remains unpaid.Clarisse's home was just foreclosed on, but the money made from the foreclosure wasn't enough to pay off all of Clarisse's liens. How will this affect Clarisse?Clarisse will lose the property and continue to owe debts to lien holders who weren't fully paid.With the exception of state liens or encumbrances, what type of lien takes priority over all others?mortgageWhat are the two primary types of deductions a homeowner who holds a primary residence is permitted to take?Mortgage interest | Property taxesHomebuyers can deduct property taxes paid on their income tax returns.This is true, but the Tax Cuts and Jobs Act limits the deduction to $10,000 for combined state and local taxes, including state income taxes.Homeowners can no longer deduct home equity loan interest.falseFor tax years 2018 to 2025, homeowners can only deduct home mortgage interest on the first $750,000 of mortgage debt ($375,000 for married filing separately).trueHomeowners with loans taken out prior to December 14, 2017 aren't subject to the new $750,000 mortgage debt limit.trueIn order for homeowners to qualify for the capital gains exclusion, they must have lived in their home at least two of the five years immediately preceding the sale.trueThe capital gains exclusion applies to profits of up to $125,000 for single taxpayers.falseThe capital gains exclusion applies to profits of up to $500,000 for couples filing jointly.trueThe capital gains exclusion is a one-time deduction.falseAfter claiming the capital gains exclusion, a homeowner isn't required to invest immediately in another residence.trueA loss on a home sale is deductible.falsePrior to 2013, the highest rate paid on this calculation of sold property was 15%.Long-term capital gainAs of 2013, a new rate of up to 20% for taxpayers in the new 39.6% income tax bracket applies.Long-term capital gainAn additional 3.8% may apply on net investment income for those in the highest tax bracket, making an effective tax rate calculation of 23.8%.Long-term capital gainThis type of gain is taxed at the taxpayers' marginal tax rate.Short-term capital gainFor tax years 2018 to 2025, a borrower can write off the interest on a home equity loan only if ______.The funds are used to buy, build, or improve the home that secures the loanWhat type of IRS deduction can be taken for a vacation home?Property taxWhat type of capital gain is considered short term?A gain on a property owned one year or lessBreeja sold her investment property for $330,000. Her adjusted basis in the property was $253,000. The difference between this sale price and the adjusted basis is ______.A capital gainA taxpayer can claim a capital gains exclusion _______.Once every two yearsShort-term capital gains are taxed at ______.The taxpayer's marginal tax rateEach stage of the investor's property ownership life cycle can be affected by income tax issues. Match each income tax-related term with the correct word to indicate the stage of the property ownership life cycle with which it's associated. : Tax creditsAcquisitionEach stage of the investor's property ownership life cycle can be affected by income tax issues. Match each income tax-related term with the correct word to indicate the stage of the property ownership life cycle with which it's associated. : Mortgage Tax DeductionsOwnershipEach stage of the investor's property ownership life cycle can be affected by income tax issues. Match each income tax-related term with the correct word to indicate the stage of the property ownership life cycle with which it's associated. : Property tax deductionsOwnershipEach stage of the investor's property ownership life cycle can be affected by income tax issues. Match each income tax-related term with the correct word to indicate the stage of the property ownership life cycle with which it's associated. : 1031 tax exchangereversion