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From Terms relating to Tax revenue for libraries:

  • Allowance for uncollectible property tax – an accounting term that is an estimate of the amount of potential tax revenue that will probably not be collectible for a variety of reasons.
  • Assessed value vs. appraised value – appraised value is the value that an appraiser thinks your property would sell for if put on the market. Taxing bodies then determine an assessed value based on a percentage of the appraised value. In Urbana, for example, the assessed value is about 33% of the appraised value. The tax rate is then applied against the assessed value.
  • Assessment bond – repayment based on tax assessment on property owners within the boundaries of the issuing body, such as a city or town.
  • Bond referendum – a tax referendum whereby the proposal for an increased tax is for a limited time in order to pay for a loan (bond) that the taxing district obtains to complete a capital project. The increased tax will pay for both the repayment of the bond and the interest that is periodically due to the bondholder
  • Charitable exemption – based on the nature of the entity owning the property, often a complete exemption. See also Non-taxable property.
  • Disability exemption – an exemption based on a certifiable disability
  • Exemption – an elimination of some or all of a tax from a property, usually expressed in terms of a dollar amount that is subtracted from the assessed value, not the appraised value.
  • General obligation bonds – repayment based on “full faith and credit” of the issuer. Often carry lowest interest rate because they are the safest.
  • Homestead exemption – an exemption based on a length of time that a property owner owns and lives on the property
  • Millage rate (aka permille or mill levy) – multiply assessed value by mill rate and divide by 1,000. So property assessed at 20,000 with a mill rate of 10 you will have a tax of $200.
  • Net assessed value – the value of a property after all allowable exemptions have been applied
  • Non-taxable property – property on which no tax is levied. See also charitable exemption.
  • Old Age exemption – an exemption granted to the elderly, usually with an income ceiling applied. That is not all seniors receive the exemption, only those whose annual income is less than XXX dollars per year.
  • Property tax – (also millage tax, ad valorem tax) is a tax required to be paid by the owner on real property (land and buildings, sometimes movable property) owned
  • Revenue bonds – repayment promised on the basis of revenue from specific service such as payments to a water utility by its customers
  • Special tax referendum – a tax referendum held to apply a special tax, such as for the building of a new library or school, or other type of capital projects and improvements
  • Tax – a monetary charge placed on the ownership of property or the purchase of goods and services.
  • Tax base – the projected monetary amount of the assessed value of property within a jurisdiction
  • Tax cap – an upper limit on the amount of property tax a property owner would be obligated to pay. Tax caps come in many varieties, based on what is being “capped,” the percentage amount of such a cap, and other factors.
  • Tax exempt bond – usually a government issued bond that exempts the owner of the bond from any federal tax that might be due on any interest received from the bond
  • Tax levy – an action by a government to collect taxes on property
  • Tax process for property tax
    • Determine municipal budget
    • Legislative appropriation determines how monies will be collected and distributed.
    • Tax authority levies the tax
    • Appeal allowed
    • Equalization is then considered by Board of Equalizers to assure fair treatment.
    • Tax rate is determined by dividing municipal budget by assessment rate of that municipality.
    • Multiply tax rate by assessed value of property to determine tax bill.
  • Tax referendum (plebiscite or ballot question) – a political action whereby a proposed increase in the property tax rate is brought before the voters on a ballot. If the ballot obtains more yes than no votes then the increased is applied
  • Taxable property – property that is subject to a tax levy
  • Veteran’s exemption – an exemption granted to military veterans
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