real estate taxes & liens zaharopoulos phoenix college rea179 & rea180
TRANSCRIPT
Real Estate Taxes & Real Estate Taxes & LiensLiens
ZaharopoulosZaharopoulos
Phoenix College REA179 & REA180Phoenix College REA179 & REA180
EncumbrancesEncumbrances
EasementsEasements
Deed RestrictionsDeed Restrictions
EncroachmentsEncroachments
LiensLiens
LienLien- a charge or claim against - a charge or claim against a person’s propertya person’s property
SecuritySecurity -something of value -something of value that borrower promises to give that borrower promises to give lender in case of defaultlender in case of default
DefinitionsDefinitionsLiens / overview of Liens / overview of categories:categories:VoluntaryVoluntaryInvoluntaryInvoluntaryStatutoryStatutoryEquitableEquitableGeneral General SpecificSpecific
Categories Categories
Statutory Statutory – created by government – created by government statutestatute
EquitableEquitable – created by the courts – created by the courts
General LiensGeneral Liens
Judgment liensJudgment liens
Estate & inheritance tax liensEstate & inheritance tax liens
Debts of a decedentDebts of a decedent
Corporation franchise tax liensCorporation franchise tax liens
IRS liens (income tax)IRS liens (income tax)
Specific LiensSpecific Liens
Real estate tax liensReal estate tax liensSpecial assessment liensSpecial assessment liensMortgage liensMortgage liensTrust deed liensTrust deed liensMechanic’s liensMechanic’s liensUtility liensUtility liensBail bond liensBail bond liensVendor’s liensVendor’s liens
Voluntary / InvoluntaryVoluntary / Involuntary
Voluntary –specificVoluntary –specific Statutory – created Statutory – created
by gov’t statuteby gov’t statute MortgageMortgage - -
secures the realtysecures the realty AutoAuto - secures the - secures the
personaltypersonalty Bail bondBail bond
InvoluntaryInvoluntaryGeneralGeneral
Statutory Statutory ((created by created by govt)govt)
Estate taxes – attached Estate taxes – attached to the estateto the estate
Inheritance taxes – Inheritance taxes – attached to the attached to the beneficiariesbeneficiaries
Decedent’s debts- Decedent’s debts- attached to the estateattached to the estate
IRS income taxes –IRS income taxes –attached to the taxpayerattached to the taxpayer
Corporation Franchise TxCorporation Franchise Tx
Equitable Equitable ((created by created by courts)courts)
Judgments-attached to the Judgments-attached to the debtordebtor
Vendor’s lien –attached to Vendor’s lien –attached to vendeevendee
SpecificSpecific StatutoryStatutory
Real Estate taxes – Real Estate taxes – attached to parcelattached to parcel
Special assessments –Special assessments –attached to parcel– attached to parcel–
Mechanic’s liens-Mechanic’s liens-attached to realtyattached to realty
EquitableEquitable Judgments-attached to Judgments-attached to
the debtorthe debtor Utility billsUtility bills
Effect of Liens on TitleEffect of Liens on Title
A lien attaches to A lien attaches to real propertyreal property the the moment it is filedmoment it is filed
A lien does not attach to A lien does not attach to personal personal propertyproperty until that property is seized until that property is seized
Liens run with the landLiens run with the land
Liens Liens attach to the propertyattach to the property; not the ; not the property ownerproperty owner
Lien PriorityLien Priority
Real estate taxes and assessments Real estate taxes and assessments have top priorityhave top priority
All other liens in order of recordationAll other liens in order of recordation(with the exception of mechanic’s liens)(with the exception of mechanic’s liens)
Subordination AgreementsSubordination Agreements
Agreements between lenders which Agreements between lenders which can change lien prioritycan change lien priority
Taxing Bodies (some)Taxing Bodies (some)
StatesStates countiescounties Cities, towns, Cities, towns,
villagesvillages Water districtsWater districts School districts School districts
(public), including (public), including community community collegescolleges
Fire, police, public Fire, police, public hospitals, public hospitals, public librarieslibraries
Drainage districtsDrainage districts Sanitary districtsSanitary districts Parks, forest Parks, forest
preserves, preserves, recreation districtsrecreation districts
Determining Tax AmountDetermining Tax Amount
Ad valoremAd valoremAssessed Assessed valuevalue
Determining Tax AmountDetermining Tax Amount
Budget processBudget process Appropriation processAppropriation process AppraisalAppraisal AllocationAllocation Tax rate calculationTax rate calculation Equalization processEqualization process
Ways to express tax rateWays to express tax rate
Mil rate = .001Mil rate = .001
Dollars per HundredDollars per Hundred
Dollars per ThousandDollars per Thousand
Tax Rate = Total Budget Need / Total Assessed ValueTax Rate = Total Budget Need / Total Assessed Value
0.01 = 50,000,000 / 5,000,000,0000.01 = 50,000,000 / 5,000,000,000
Taxation District
Budget Needs
Assessed Value of All Property
Tax Rate
As a Mill Rate
In $ per Hundred
In $ per Thousand
MCCD 10,000,000
2,000,000,000
Phoenix 10,000,000
1,000,000,000
Maricopa 30,000,000
2,000,000,000
Totals
50,000,000
5,000,000,000
0.01 10 $1.00 $10.00
Unpaid Property TaxesUnpaid Property Taxes
Terminology:Terminology:
Redemption periodRedemption period Equitable right of redemptionEquitable right of redemption Tax Certificate SaleTax Certificate Sale Certificate of PurchaseCertificate of Purchase Quiet Title SuitQuiet Title Suit Treasurer’s DeedTreasurer’s Deed
Unpaid Property TaxesUnpaid Property Taxes
1) Actual Tax Sale1) Actual Tax Sale
2) Tax Certificate 2) Tax Certificate SaleSale
EqualizationEqualization
To correct inequalities in To correct inequalities in statewide tax assessmentsstatewide tax assessments
UniformityUniformity
Equalization factor is multiplied Equalization factor is multiplied to assessed value to assessed value beforebefore tax tax rate appliedrate applied
Can you appeal your assessed Can you appeal your assessed value?value?
Maricopa County Tax Assessor’s OfficeMaricopa County Tax Assessor’s Office State Board of EqualizationState Board of Equalization Superior CourtSuperior Court
www.maricopa.govwww.maricopa.gov
Liens, continuedLiens, continued
Special AssessmentsSpecial Assessments Mechanic’s LiensMechanic’s Liens JudgmentsJudgments Lis PendensLis Pendens Attachments – writ of Attachments – writ of
attachmentattachment