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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
Taxable value $150,000
$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
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.
- Fall '08