Purpose of Taxes
-Real estate taxes are one of the ways the government uses to raise money for its services and therefore the amount of real estate taxes on a property can have an impact on the value of the property
-RE taxes are part of the municipal budget used to pay f
Why Tax Land & Improvements?
A. It's right out there in the open
In the early days that is how the taxing authority would work. They would actually go door to door and knock on the house (or the building) and collect the taxes that way.
B. And then from an economic theory standpoint
Calculation of RE Taxes
-Every property has what they call an 'Assessed Value'.
Assessed Value= the value that an assessor places on a property for the purpose of real estate taxes.
The problem is that, in almost all cases, the assessed value and market value are very different.
How to Determine if RE is over assessed
-The first thing that you can do is:
(A.) you can look at some comparable sales
(B.) you can get an appraiser to actually appraise the property. Once you know how much the property is worth as of the tax status date, remember that every assessment role ha
Why do assessments differ?
Two main reasons:
-No1. The people setting the assessments may not be the same person so there could be inconsistencies.
-No2. The people who create the equalization rates may not be the same people and also there sometimes is a matter of judgment whether
How are Taxes Calculated?
http://www.tax.ny.gov/pit/property/learn/proptaxcalc.htm - How property taxes are calculated
Tax Owed = taxable assessment x tax rate
Tax rates are calculated by local jurisdictions
-There are several steps involved in determining tax rates:
- Taxing juri
Various Taxing Jurisdictions
- Taxing jurisdiction can be a school district, municipality, county, or special district.
- When you are looking whether you are going to take a listing on a property or appraise a property, one of the things you need to do is to find out what the total
Property Data & Lot Information
http://www1.nyc.gov/site/finance/taxes/property-data-and-lot-information.page
Equalization
Think of market value on one hand and the assessed value on the other hand. If the two of them are equal and there is only one point at which that can happen, that means that the assessor's ratio (or the equalization rate) is 100%. Very rarely does this h
Special Assessments Districts
A special assessment district or dependent financing district is a traditional method of privately financing local improvements. All special assessment districts require some type of landowner or voter approval of inclusion in the districts. The major lim
Protesting Your RE Tax
- under an assessing system if you want to protest your taxes they have what is known as a 'grievance period' which is usually the first couple of weeks into the year at which the assessment takes place.
- The client MUST file the protest for that taxable
Agent Responsibilities
What are the agent's responsibilities?
-The most important thing an agent can do is to be able to get accurate information about the property and the taxes: getting the proper assessment, getting the proper tax rates, and then trying to confirm that.
-Is
Small Claims Assessment Review aka SCAR proceedings
Two types of situations:
- There is a residential real estate tax protest and
- There is a commercial real estate tax protest
-In residential RE tax protest: You could show assessments of houses that are similar to yours and say to the review officer: 'Lo
How properties are assessed
http://www.tax.ny.gov/pit/property/learn/howassess.htm
Tax Assessments Questions
Q1: What is evidence in a tax certiorari proceeding?
A1: In simple terms, the court will decide about the weight and admissibility of evidence.
What is 'admissible evidence'? It could be comparable sales, it could be an appraisal. An appraisal done by a q
Terms
-Ad Valorem Taxes - according to valuation; taxes based on values of the property
- Appropriation - A sum of money or total assets devoted to a special purpose.
-Assessed Value - A valuation placed upon property by a public officer or a board, as a basis