1 of 10 - A taxing jurisdiction has a mill rate of 14.7. What is an owner’s tax bill if his taxable value is $250,000?
$36.75
$367.50
$3,675.00
The tax bill is based on assessed value, not taxable value.
You answered correctly
2 of 10 - 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?
General Tax
Special Assessment Tax
Ad Valorem
Both A and C
You answered incorrectly
Special Assessment Tax is used to fund a project that will benefit residents in a particular area, or in this case, the entire city. Each resident benefiting from the improvement will be charged a pro rata share of the cost of the project, assessed by frontage foot.
3 of 10 - Which of the following is the dollar value of the mill rate 86.5?
86.5
0.865
0.0865
8.065
You answered correctly
4 of 10 - A mill rate is used in real estate
appraisal, to determine market value.
finance, to determine the points charge on a loan.
taxation, to determine the owner’s tax bill.
assessment to determine the jurisdiction’s budget.
You answered correctly
5 of 10 - 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.
Proposition 60 allows homeowners 65 years and older to transfer their base-year tax value to another home of equal or lesser value.
Proposition 90 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value.
Proposition 60 allows homeowners 55 years and older to transfer their base-tax value to another home of lesser value.
You answered incorrectly
Under Proposition 60, homeowners 55 and older can transfer their base-year property tax value to another home of equal or lesser value in the same county and maintain the lower assessment from their former home.
6 of 10 - 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 them to be quite manageable. When they received their first assessment, they were shocked. Which proposition is attributed to this dramatic increase in property taxes?
Proposition 60
Proposition 13
Proposition 218
Proposition 90
You answered correctly
7 of 10 - 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 occupancy. Which step, if any, did Tim leave out?
Tim forgot to ensure the axles are attached to the frame.
Tim forgot to obtain a building permit.
Tim forgot to have the piece of property on which the mobile home is located mapped and recorded.
Tim fulfilled every prerequisite for transforming his mobile home into real property.
You answered incorrectly
The four requirements for transforming a mobile home into real property include obtaining a building permit, attaching the home to a foundation, recording a document that shows the home was attached to a foundation system, and obtaining a certificate of occupancy.
8 of 10 - 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?
Ken has already lost the title to his home by falling behind in his taxes.
After the "intent to sell" notice, a three-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.
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.
After the "intent to sell" notice, Ken must repay all back taxes, interest, penalties, and any other applicable fees within one year, and pay the current taxes on time to avoid losing the title to his home.
You answered correctly
9 of 10 - 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. Does she need to worry?
In the state of California, transferring a principal residence of $2 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised and the taxes increased.
When the property is transferred from the Smiths to Renee, the full cash value for tax purposes will be adjusted to the current market value of the property. This will increase the property taxes considerably.
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.
None of the Above
You answered incorrectly
The transfer exclusion to Proposition 13 prevents the reappraisal of a principle residence of $1 million or less that is being transferred between parents and children, resulting in no increase in property taxes on the property.
10 of 10 - 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.
California has eliminated all estate and inheritance taxes. Due to the elimination, federal estate taxes do not apply in California.
Sydney will have to pay the applicable estate and inheritance taxes on her grandmother's estate based on her particular taxable situation.
None of the above
You answered incorrectly
California has eliminated inheritance taxes altogether, so Sydney will not pay taxes on the inheritance.
