Ad Valorem Tax
Ad valorem taxes are based on the value of the property being taxed. It is Latin for tax set "according to value
Assessed Value
Value used for tax purposes. In each community, a certified tax assessor lists the values of all property as of October 1 for the tax year that begins the next January 1.
Assessment Roll
list of all taxable property. to arrive at a tax rate, the total monies needed for the coming fiscal year are divided by the total assessments of all real estate located within the jurisdiction of the taxing body (called the assessment roll).
for example:
Equalization Factor
adjusts for assessment variations. because not every district assess exactly at market value, the State division of taxation publishes tables of equalization rates to achieve uniformity among tax districts. an equalization factor may be used to raise or l
Full-Value Assessment
estimate based on probable sales price. New jersey has set a goal of full-value assessment (almost impossible to attain), that is, of assessing real estate at 100% of true market value.
Mill
one-tenth of a cent. the rate is expressed in mills. A mill is one one thousandth of a dollar, or $0.001.
In new Jersey, however, the tax rate can only be expressed as dollars per hundred of assessed value. ex: $3 per $100 of assessed value.
Ratable
a taxable property
Redemption Period
time in which a foreclosed owner can regain property
Revaluation
reassessment of all a municipality's ratables. an outside appraisal firm is hired to come in and assess every ratable (taxable property) in the municipality, to bring everyone's assessment up to current market value.
Special Assessment
tax only on property directly benefiting from an improvement
Tax foreclosure
setting of property for unpaid taxes
Tax Lien
he ownership of real estate is subject to certain government powers. One of these powers is the right of state and local governments to impose (levy) tax liens to pay for government functions. Because the annual taxes levied on real estate usually have pr
Tax sale
when taxed are unpaid six months after the end of the tax year, the taxing body can resort to tax foreclosure. the local tax collector is required to hold a tax sale of the property. Tax sales is a collection of overdue taxes through public auction of pro
real estate taxes can be divided in into two types:
1. general real estate tax or ad valorem tax: the general real estate tax is made up of the taxes levied on real estate by various governmental agencies and municipalities. These taxing bodies include:
a. states;
b. counties;
c. cities, towns, townships,
What properties are exempt from property taxes?
most properties used for religious, charitable, and other not-for -profit purposes are totally exempt from property taxes.
A property is assessed at $40,000. Its equalization rate for county taxes is 1.5. The county tax rate is 10 mills. What are the county taxes on the property?
$40,000 (assessed value) x 1.5 (equalization rate) = $60,000 (equalized value)
10 mills (tax rate) �1,000 = $0.01 (tax rate in dollars)
$60,000 (equalized value) x $0.01 (county tax rate) = $600 (county taxes due)
tax levy
the amount to be raised from the general real estate tax is then imposed on property owners through a tax levy, the formal action taken to impose the tax, by a vote of the taxing districts governing body.
how to calculate tax bills?
a property owner's tax bill is computed by applying the tax rate to the assessed valuation of the property. for example: on property assessed for tax purposes at $90,000, at a rate of 3%, or 30 mills, the tax will be $2700 ($90,000 x 0.030 = $2,700). if a
Can you buy someone's property taxes?
yes. The purchaser at a tax sale receives a tax sale certificate, but is not entitled to occupy or use the property and does not receive title. if a municipality purchases the certificate, the delinquent homeowner has six months in which to pay the money
Income Tax Issues for Home Sellers
Both the Federal government and New Jersey provide an exclusion from capital gains (profit) tax up to $500,000 profit on the sale of a principal residence by married taxpayers who file jointly. single filers are entitled to a $250,000 exclusion. this excl