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Chapter 3, Governmental Controls

Terms

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Ad Valorem
Latin for according to valuation" usually referring to a tax or assessment. Real property tax is an ad valorem tax" " based on the assessed valuation of the property. "
Capital Gains
Gains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes.
Depreciation
A decline in value of a piece of property from any cause
Depreciation Tax
For income tax purposes, depreciation is an expense deduction taken for an investment in depreciable property.
Eminent Domain
The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
Improvement District
Levied against a limited group of property owners for special improvements to their properties.
Installment Sale
A sale, for income tax purposes, in which the seller spreads the receipts of the proceeds over two or more tax years, and does not receive the entire principal amount in the first year of sale.
Levy
The amount of money a governing body certifies to be raised from the property tax.
Mill
One tenth of a cent (.001). A unit used in computing real property taxes.
Public Property
That which is owned by government.
Special Assessment
A tax on a specific parcel of really that will benefit from a proposed public improvement, as opposed to a general tax on the entire community.
Tax Deductible
An amount of money that may be deducted from gross income in arriving at net taxable income before depreciation, if any.
Tax-Free Exchange
A method of deferring capital gains by exchanging real property for other like property. A misnomer, actually, tax-sheltered or tax- deferred.
Taxable Gain
The amount of profit subject to tax (recognized gain).
Zoning Ordinance
'Exercise of police power of a municipality in regulating and controlling the character and use of property. A rule for computing depth factors.
Redlining
Residential Financing Practice of refusing to make loans on properties in certain neighborhood regarless of mortagors Qualifications
Blockbustering
Practice of inducing owners to an area to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down
Public Land Use Controls
1948: US Courts first recognize restrictive covenants

1926: US Supreme Court upheld Zoning Ordinances
PETE
P - Police Power (Bld codes,etc)
E - Eminent Domain
T - Taxes
E - Escheat
Steering
Picking real estate to show to whites in predominately white areas (same for black etc.)
Federal Fair Housing Laws
Civil Rights Act of 1866: prohibited descrimation in housing based on race
Civil Rights Act of 1964: expanded fair housing program
Fair Housing Act of 1968: Prohibits descrimination based on race, color, religion, or national orgin
Fair Housing Amendments of 1988: expanded 1968 Act to include mental disablities and families)
Escheat
Reversion of property to state or county in cases where decedent dies intestate & no heirs capable of inheriting when property is abandoned

Deck Info

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