Chapter 11_nopause

Chapter 11_nopause - Chapter 11: Real Estate Taxation Hua...

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Unformatted text preview: Chapter 11: Real Estate Taxation Hua Sun Department of Accounting and Finance California State University, San Bernardino March 05, 2009 Hua Sun (CSUSB) Real Estate Taxation March 05, 2009 1 / 18 Real Estate Taxation Proposition 13 provides that maximum annual tax on real property: I 1% of base year value (inflation factor of no more than 2% year) I Plus indebtedness approved prior to passage of Prop 13 and I Bonded indebtedness approved by voters after July 1, 1978. Hua Sun (CSUSB) Real Estate Taxation March 05, 2009 2 / 18 Taxable Property Value Base value is market value as of February 28, 1975, or time of subsequent REASSESSMENT EVENT * When property is sold or has changed ownership, assessed value is full I cash value as of the date of the sale or change of ownership * I For new construction, assessed value is full cash value as of completion * I For additional improvement, assessed value is the base value plus value of improvement * F * : Plus inflation factor of no more than 2% per year Hua Sun (CSUSB) Real Estate Taxation March 05, 2009 3 / 18 Reassessment Event REASSESSMENT EVENT does not occur: I In transfer between spouses I In transfer of principal residence and first $1 million of other real property between parents and children I Transfer previous base value to the new purchase residence within the same county by homeowner over age 55 F Transfer to a different county may also be available, subject to approval by the other county I In new purchase by severely disabled homeowner I When property improved to enhance usability by severely disabled person Hua Sun (CSUSB) Real Estate Taxation March 05, 2009 4 / 18 Other Tax Features County assessor is an elected official who determines assessed values and prepares the tax roll. I Property owner can appeal assessors valuation by contacting local assessors office or appeals board office F Need to provide appraisal data refuting assessors estimate of value. F Be Cooperative in releasing assessment-related information. Example: Bryan obtained a building permit to make a 1500 sq feet addition to his house. Upon finishing the improvement, the county assessors representative came by to look at the extent of improvement, but Bryan refused to allow appraiser to see the finished improvement. As a result, the assessor estimated the improvement of 2200 sq feet by judging from the outside of property and make...
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This note was uploaded on 02/23/2010 for the course FIN 81824 taught by Professor Mcgrath during the Winter '09 term at CSU San Bernardino.

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Chapter 11_nopause - Chapter 11: Real Estate Taxation Hua...

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