New York Real Estate for Salespersons, 5 th e

1. New York Real Estate for Salespersons, 5the By Marcia Darvin Spada Cengage Learning Chapter 15 Taxes and Assessments

2. Chapter 15 Taxes and Assessments Chapter 15 Taxes and Assessments

3. Chapter 15 Key Terms • Ad valorem taxes • Appropriation • Assessed value • Assessing unit/approved assessing unit • Assessment • Board of Assessment Review • Homestead/ Nonhomestead • In rem • Special assessment/special assessment districts • Tax levy • Tax lien • Tax rate Chapter 15 Taxes and Assessments

4. Property Taxes • Based on fair market value • Most property subject to assessment and taxation • Exceptions • government • religious • educational • charitable Chapter 15 Taxes and Assessments

5. Assessor Protesting assessments Assessment roll Uniform percentage Assessed Value • 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

6. 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

7. Relationship of the building permit to reassessment Illegal/ Legal Assessments Undeclared improvements discovered Equity Issues Reassessment Upon Sale Old vs. new construction Community wide reassessment Equity Issues and Differences in Assessments Chapter 15 Taxes and Assessments

8. Tax Rate Formula Tax dollars required/ Taxable assessed value = Rate $2 million tax levy/ $40 million taxable assessed value = $5 for each $100 of taxable assessed value 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 Chapter 15 Taxes and Assessments

10. Equalization Total assessed value (AV) ÷ Total market value (MV) = Equalization Rate Chapter 15 Taxes and Assessments

11. Senior citizen exemption Veterans’ exemption Exemptions Deductions Refunds Disability New York STAR Property Tax Exemptions, Deductions, and Refunds Chapter 15 Taxes and Assessments

12. Grievances Unequal Assessment/ Unequal Assessment Ratio Excessive Assessment- Full Value Disagreement Unlawful Assessment Misclassification- Homestead And Nonhomestead Classes Grievances Chapter 15 Taxes and Assessments

13. Residential Only Filing with the county clerk Hearing procedure Types of evidence Appeal Protesting commercial property assessments- certiorari proceedings Small Claims Assessment Review Chapter 15 Taxes and Assessments

14. Real property tax Liens Administrative tax sale Tax foreclosure and tax sale Real Property Tax Liens Chapter 15 Taxes and Assessments

15. Agent’s Responsibilities • Read 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