2011©Cengage Learning. All Rights Reserved.

Property Taxes 2011©Cengage Learning. All Rights Reserved.

Types of Taxes Federal State Local governments 2011©Cengage Learning. All Rights Reserved.

Types of Taxes Federal State Local governments 2011©Cengage Learning. All Rights Reserved.

Types of Taxes Federal State Local governments 2011©Cengage Learning. All Rights Reserved.

Effect of Nonpayment Become a lien on real property Ultimately foreclosed & sold at a tax sale Proceeds of sale will be applied to the tax debt Balance paid to the ex-property owner 2011©Cengage Learning. All Rights Reserved.

Exempt Property Government Property Welfare Institutions 2011©Cengage Learning. All Rights Reserved.

Exemptions Open-Space Exemption Veteran’s Exemption Homeowner’s Exemption 2011©Cengage Learning. All Rights Reserved.

TAX COLLECTION PROCESS Due Dates – on November 1 & February 1 Lien if Not Paid Tax-Defaulted Property Redemption 2011©Cengage Learning. All Rights Reserved.

Subject to Power of Sale Transfer Free & Clear State Issues New Deed Excess Sums of Sale 2011©Cengage Learning. All Rights Reserved.

TAXING PROCEDURE Proposition 13 Tax Limits Mello-Ross Assessments 2011©Cengage Learning. All Rights Reserved.

TAXING PROCEDURE Post November 2000 School Bonds Voter-Approved Assessments Pre-July 1978 Bonds 2011©Cengage Learning. All Rights Reserved.

Value Roll-Back to 1975 For any property sold, transferred, or significantly repaired since March 1975, the base value is the value as of the date of that transfer, sale, or repair to 1976 value is deemed to be the true value of the property for that year. 2011©Cengage Learning. All Rights Reserved.

Inflation Factor Increase value of the property will be tied to the consumer price index, to consider inflation Change of Ownership 2011©Cengage Learning. All Rights Reserved.

Special Consideration Newly Constructed Property Senior Citizen Legislation Over 55 or Disabled Carryover Basis 2011©Cengage Learning. All Rights Reserved.

CALCULATION OF TAXES Taxes before July 1978 Taxes since July Value under the new Law 2011©Cengage Learning. All Rights Reserved.

CALCULATION OF TAXES 2003 Value under the Old Law Tax on House Sold in 2003 under the New Method 2011©Cengage Learning. All Rights Reserved.

PRIORITY OF TAX LIENS Normal Priority Rules Inapplicable Priority over Private Liens  Importance to Lenders 2011©Cengage Learning. All Rights Reserved.

PRIORITY OF TAX LIENS Priority to Federal Tax Liens Priority between Tax Deeds 2011©Cengage Learning. All Rights Reserved.