Question 1

Local government programs and services are financed primarily through

Accepted Answer

A)  property taxes. 
B)  federal income taxes. 
C)  state income taxes. 
D)  state sales taxes. 
A)  property taxes. 
B)  federal income taxes. 
C)  state income taxes. 
D)  state sales taxes. A

Question 2

Taxes on real property are levied on an ad valorem basis.

Accepted Answer

A) True 
 B)False  True

Question 3

Choose the one most appropriate answer for each.
-a tax expressed in tenths of a cent per dollar of assessed valuation

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien O

Question 4

The tax rate on a property is $3.32 per $100 of assessed valuation. The assessed value is $55,864. What is the annual tax payment? (round to the nearest dollar)

Accepted Answer

A)  $185 
B)  $594 
C)  $592 
D)  $1,855 
A)  $185 
B)  $594 
C)  $592 
D)  $1,855

Question 5

In calculating the gain on the sale of a residence for income tax purposes, it is necessary to calculate the amount ____________________ from the sale.

Accepted Answer

The answer of In calculating the gain on the sale...

Question 6

A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale?

Accepted Answer

A)  $6,300 
B)  $42,900 
C)  $83,700 
D)  $82,600 
A)  $6,300 
B)  $42,900 
C)  $83,700 
D)  $82,600

Question 7

When local budgets along with a list of sources from which the money will be derived, is enacted into law, it is called the ____________________ process.

Accepted Answer

The answer of When local budgets along with a list...

Question 8

In calculating "basis" for income tax purposes, one must take into consideration the market value of similar properties.

Accepted Answer

A) True 
 B)False

Question 9

Choose the one most appropriate answer for each.
-a charge or hold by a government against property to ensure the payment of taxes

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 10

The theory of special assessment allocation is that the improvement benefits the

Accepted Answer

A)  land in the district. 
B)  structures in the county. 
C)  people in the equalization area. 
D)  businesses in the district. 
A)  land in the district. 
B)  structures in the county. 
C)  people in the equalization area. 
D)  businesses in the district.

Question 11

The appropriation appeals board hears complaints from property owners regarding their assessments.

Accepted Answer

A) True 
 B)False

Question 12

Choose the one most appropriate answer for each.
-a preferential income tax treatment on the sale of an appreciated asset before 1987

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 13

Choose the one most appropriate answer for each.
-an improvement that benefits the public at large and is therefore financed by general property taxes

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 14

Choose the one most appropriate answer for each.
-the enactment of a taxing body's budget and sources of money into law

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 15

Choose the one most appropriate answer for each.
-a charge or levy based directly on the measured distance that a parcel of land abuts a street

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 16

In a residential neighborhood, the assessment for installation of storm sewers, curbs, and gutters is made on a _________________________ basis.

Accepted Answer

The answer of In a residential neighborhood, the assessment for...

Question 17

When a home owner feels his property has been assessed too high and files an appeal, the burden of proof is on the

Accepted Answer

A)  appraiser chosen by the home owner. 
B)  assessor's staff appraiser. 
C)  homeowner. 
D)  county supervisor. 
A)  appraiser chosen by the home owner. 
B)  assessor's staff appraiser. 
C)  homeowner. 
D)  county supervisor.

Question 18

The following public improvements would most probably be funded by a special assessment EXCEPT

Accepted Answer

A)  installation of street lights. 
B)  curbs. 
C)  reconstruction of city sewage plant. 
D)  widening of neighborhood streets. 
A)  installation of street lights. 
B)  curbs. 
C)  reconstruction of city sewage plant. 
D)  widening of neighborhood streets.

Question 19

In some states the board of equalization equalizes assessment procedures between counties.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would be the highest tax rate?

Accepted Answer

A)  38 mills 
B)  $3.80./$100 
C)  $38/$1,000 
D)  no difference 
A)  38 mills 
B)  $3.80./$100 
C)  $38/$1,000 
D)  no difference

Exam 14: Taxes and Assessments

Local government programs and services are financed primarily through

Taxes on real property are levied on an ad valorem basis.

Choose the one most appropriate answer for each. -a tax expressed in tenths of a cent per dollar of assessed valuation

The tax rate on a property is $3.32 per $100 of assessed valuation. The assessed value is $55,864. What is the annual tax payment? (round to the nearest dollar)

In calculating the gain on the sale of a residence for income tax purposes, it is necessary to calculate the amount ____________________ from the sale.

A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale?

When local budgets along with a list of sources from which the money will be derived, is enacted into law, it is called the ____________________ process.

In calculating "basis" for income tax purposes, one must take into consideration the market value of similar properties.

Choose the one most appropriate answer for each. -a charge or hold by a government against property to ensure the payment of taxes

The theory of special assessment allocation is that the improvement benefits the

The appropriation appeals board hears complaints from property owners regarding their assessments.

Choose the one most appropriate answer for each. -a preferential income tax treatment on the sale of an appreciated asset before 1987

Choose the one most appropriate answer for each. -an improvement that benefits the public at large and is therefore financed by general property taxes

Choose the one most appropriate answer for each. -the enactment of a taxing body's budget and sources of money into law

Choose the one most appropriate answer for each. -a charge or levy based directly on the measured distance that a parcel of land abuts a street

In a residential neighborhood, the assessment for installation of storm sewers, curbs, and gutters is made on a _________________________ basis.

When a home owner feels his property has been assessed too high and files an appeal, the burden of proof is on the

The following public improvements would most probably be funded by a special assessment EXCEPT

In some states the board of equalization equalizes assessment procedures between counties.

Which of the following would be the highest tax rate?

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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