CAE Tax Policy and Assessment Administration Flashcards
6 cards from real CAE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAE Tax Policy and Assessment Administration flashcards as text
Which principle requires that all taxable property within a jurisdiction be assessed at the same percentage of market value?
Answer: Uniformity
The uniformity principle requires that all taxable property be assessed at the same percentage of market value to ensure equal treatment.
What is the primary purpose of a tax rate in the context of property taxation?
Answer: To calculate the amount of tax owed based on assessed value
The tax rate (mill rate) is applied to the assessed value to calculate the actual property tax owed by the owner.
Which type of property is most commonly exempt from ad valorem taxation in the United States?
Answer: Government-owned property
Government-owned property (federal, state, and local) is most commonly exempt from ad valorem taxation by constitutional provisions.
What does 'assessment ratio' refer to in property tax administration?
Answer: The ratio of assessed value to market value
The assessment ratio is the ratio of assessed value to market value, used to measure assessment uniformity and level.
Which statistical measure is commonly used to evaluate the level of assessment in a jurisdiction?
Answer: Median assessment ratio
The median assessment ratio is the primary measure of assessment level, representing the typical ratio of assessed to market value in a jurisdiction.
What is a 'circuit breaker' in property tax policy?
Answer: A tax relief program that limits property tax as a percentage of income
A circuit breaker is a tax relief program that provides property tax reduction when property taxes exceed a set percentage of a taxpayer's income.