Chapter 19

The Smiths have decided to move to Antigua. They are transferring the ownership of their $950,000 home in Oakland to their daughter, Renee. Renee has heard about Proposition 13 and is nervous about not being able to afford the increase in property taxes.

In the state of California, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised nor the taxes increased.

John and Thom purchased a home that only had one previous owner. It is a simple three-bedroom, two-bath ranch. The previous owner built the home in 1964 and recently passed away. John and Thom had looked at the previous owner's property taxes and found th

Proposition 13

Sydney has inherited her grandmother's estate worth approximately $4.5 million. She is worried about paying taxes on the estate and the inheritance. How will these taxes affect her new estate and inheritance?

While the federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether.

Louise recently turned 65, retired, and is downsizing to a smaller home. She was concerned about moving from the home she owned for 40 years with its low assessment to a smaller home, but with a much larger assessment. Which proposition eases her worries?

Proposition 60 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value

A taxing jurisdiction has a mill rate of 14.7. What is an owner's tax bill if his taxable value is $250,000?

$3,675.00

The sewers in Mary's neighborhood need replacing. In fact, the entire sewage system for her city needs replacing. The city has imposed a tax that will pay for all of the sewer updates in the area. What type of real estate tax applies?

Special Assessment Tax

Ken has fallen behind on his property taxes. He has received the "intent to sell" notice and is terrified of losing his home. Ken lost his job and cannot immediately repay the back taxes. How can Ken keep from losing his residence?

After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.

Tim owns a mobile home he wants to transform into real property. He attaches the mobile home to an approved foundation; records a document reflecting that the mobile home has been affixed to an approved foundation system; and obtains a certificate of occu

Tim forgot to obtain a building permit.

A mill rate is used in real estate

Taxation, to determine the owner's tax bill

Which of the following is the dollar value of the mill rate 86.5?

0.0865