Florida · state portion

Free Florida Taxes Affecting Real Estate practice questions

10 original questions with full explanations. 3 of the 100 scored exam questions (about 3%) come from this area.

1. 1

   What is the documentary stamp tax rate on deeds in most Florida counties?

   • A. $0.50 per $100
   • B. $0.60 per $100
   • C. $0.80 per $100
   • D. $0.70 per $100
   Show answer & explanation

   Answer: D

   The documentary stamp tax rate on deeds in most Florida counties is $0.70 per $100 of price. For example, a $200,000 deed would incur a tax of $200,000 * $0.70 / $100 = $1,400.

2. 2

   A property valued at $190,000 is assessed at 40% of value. The tax rate is $1.50 per $100 of assessed value. What is the annual tax?

   • A. $1,140
   • B. $114
   • C. $2,850
   • D. $11,400
   Show answer & explanation

   Answer: A

   Assessed = $190,000 × 40% = $76,000. Tax = ($76,000 ÷ 100) × 1.5 = $1,140.

3. 3

   What is the purpose of the Truth in Millage (TRIM) notice in Florida?

   • A. To notify property owners of their tax bill
   • B. To apply for homestead exemption
   • C. To collect property taxes
   • D. To inform property owners of the proposed millage rate and taxable value
   Show answer & explanation

   Answer: D

   The Truth in Millage (TRIM) notice informs property owners of the proposed millage rate and taxable value, allowing them to attend public hearings and provide input.

4. 4

   What is the benefit of the Greenbelt agricultural classification for property tax purposes in Florida?

   • A. It increases the taxable value of the property
   • B. It is used to calculate the documentary stamp tax
   • C. It has no effect on the taxable value
   • D. It decreases the taxable value of the property
   Show answer & explanation

   Answer: D

   The Greenbelt agricultural classification can decrease the taxable value of the property, thus reducing the property tax.

5. 5

   What is the effect of the Save Our Homes 3% cap on a property's assessed value?

   • A. It limits the increase in assessed value to 3% per year
   • B. It reduces the assessed value by 3% per year
   • C. It increases the assessed value by 3% per year
   • D. It has no effect on the assessed value
   Show answer & explanation

   Answer: A

   The Save Our Homes 3% cap limits the increase in assessed value to 3% per year, which in turn affects the property tax amount.

6. 6

   A property valued at $200,000 is assessed at 100% of value. The tax rate is $3.00 per $100 of assessed value. What is the annual tax?

   • A. $60,000
   • B. $3,000
   • C. $600
   • D. $6,000
   Show answer & explanation

   Answer: D

   Assessed = $200,000 × 100% = $200,000. Tax = ($200,000 ÷ 100) × 3 = $6,000.

7. 7

   A borrower is securing a new mortgage of $150,000. What is the intangible tax on this mortgage?

   • A. $300
   • B. $150
   • C. $30
   • D. $3,000
   Show answer & explanation

   Answer: A

   The intangible tax is 2 mills, or $0.002 per dollar, so $150,000 * $0.002 = $300.

8. 8

   A new mortgage of $200,000 is issued. What is the intangible tax on this mortgage?

   • A. $140
   • B. $1400
   • C. $200
   • D. $400
   Show answer & explanation

   Answer: D

   The intangible tax is 2 mills, or $0.002 per dollar. For a $200,000 mortgage, the tax is $200,000 * $0.002 = $400.

9. 9

   A property valued at $290,000 is assessed at 25% of value. The tax rate is $3.00 per $100 of assessed value. What is the annual tax?

   • A. $218
   • B. $21,750
   • C. $8,700
   • D. $2,175
   Show answer & explanation

   Answer: D

   Assessed = $290,000 × 25% = $72,500. Tax = ($72,500 ÷ 100) × 3 = $2,175.

10. 10

    A property valued at $150,000 is assessed at 40% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?

    • A. $3,000
    • B. $120
    • C. $12,000
    • D. $1,200
    Show answer & explanation

    Answer: D

    Assessed = $150,000 × 40% = $60,000. Tax = ($60,000 ÷ 100) × 2 = $1,200.