Lesson3_Government

Eriksen 5 real estate fundamentals texas tech

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Unformatted text preview: , $25,000 in Homestead Exemptions Dr. Eriksen 5 Real Estate Fundamentals Texas Tech University Lesson 3: Governmental Controls DETERMINING TAX LIABILITY 1. Determine Taxable Value Market value Less: Exemptions Taxable value $150,000 25,000 $125,000 2. Determine Tax Rate Property Tax Rate = 30 mils, or 3% of Taxable Value 3. Multiply $125,000 x .03 = $3,750 Annually Effective Millage Rates in US 22 PROPOSITION #13 in CALIFORNIA 24 Progressive Property Tax System in 1970’s Rich Areas Subsidized Schools in Poor Areas Voted Successfully in 1978 to: Limit Sales Tax to 1% for Each Property Sold Cap Annual Increases in Assessed Values by 2% Assessed Values Revert to Sales Price when Sold Similar Property Tax “Revolts” in Other States Discussion Questions: Who benefits from property tax limits like Prop #13? How do property tax limits potentially distort the housing market? Dr. Eriksen 6...
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This document was uploaded on 03/13/2014 for the course FIN 3332 at Texas Tech.

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