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Florida Taxes Affecting Real Estate — Printable Practice Pack

Florida state portion · Chapter 475 F.S., Rule 61J2 and Florida's transaction-broker relationships · 20 questions · Answer key on the last page · agentexamcoach.com

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1.What is the effect of the Greenbelt agricultural classification on property taxes?
(A)It increases the assessed value
(B)It decreases the millage rate
(C)It has no effect on property taxes
(D)It reduces the assessed value based on agricultural use
2.What is the effect of the Save Our Homes 3% cap on a property's assessed value in Florida?
(A)It increases the assessed value by 3% annually
(B)It freezes the assessed value
(C)It reduces the assessed value by 3% annually
(D)It limits the increase in assessed value to 3% annually
3.A property valued at $230,000 is assessed at 100% of value. The tax rate is $3.00 per $100 of assessed value. What is the annual tax?
(A)$69,000
(B)$690
(C)$3,450
(D)$6,900
4.A property valued at $320,000 is assessed at 25% of value. The tax rate is $3.00 per $100 of assessed value. What is the annual tax?
(A)$9,600
(B)$24,000
(C)$240
(D)$2,400
5.A property owner applies for Greenbelt agricultural classification. If approved, what is the primary benefit?
(A)A reduction in the property's just value
(B)An exemption from all property taxes
(C)An increase in the property's taxable value
(D)A reduction in the property's assessed value
6.What is the documentary stamp tax on a $250,000 deed in Florida, outside of Miami-Dade County?
(A)$1,500
(B)$1,000
(C)$1,250
(D)$1,750
7.A lender issues a $200,000 mortgage. What is the documentary stamp tax on the note?
(A)$700
(B)$600
(C)$500
(D)$400
8.Who customarily pays the documentary stamp tax on a deed in a residential sale?
(A)The buyer
(B)The title company
(C)The broker
(D)The seller
9.A property valued at $310,000 is assessed at 25% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?
(A)$6,200
(B)$155
(C)$1,550
(D)$15,500
10.A property valued at $160,000 is assessed at 25% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?
(A)$8,000
(B)$80
(C)$3,200
(D)$800
11.What is the documentary stamp tax rate on notes in Florida?
(A)$0.25 per $100
(B)$0.30 per $100
(C)$0.35 per $100
(D)$0.40 per $100
12.A property valued at $280,000 is assessed at 25% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?
(A)$14,000
(B)$5,600
(C)$140
(D)$1,400
13.What type of lien is created when a property owner fails to pay property taxes?
(A)Voluntary lien
(B)Mechanic's lien
(C)Tax lien
(D)Involuntary lien
14.What is the effect of the Save Our Homes exemption on the assessed value of a homestead property?
(A)It reduces the assessed value by 3% per year
(B)It has no effect on the assessed value
(C)It increases the assessed value by 3% per year
(D)It limits the increase in assessed value to 3% per year
15.What is the effect of the Greenbelt agricultural classification on a property's taxable value in Florida?
(A)It increases the taxable value
(B)It has no effect on the taxable value
(C)It reduces the taxable value based on the property's agricultural use
(D)It eliminates all property taxes
16.A property valued at $360,000 is assessed at 40% of value. The tax rate is $2.50 per $100 of assessed value. What is the annual tax?
(A)$3,600
(B)$9,000
(C)$360
(D)$36,000
17.What is the purpose of the Truth in Millage notice in Florida?
(A)To inform property owners of their tax bill
(B)To notify property owners of a change in their property's value
(C)To disclose the proposed millage rate and its impact on taxes
(D)To announce a change in the homestead exemption
18.What is the documentary stamp tax on a $750,000 note in Florida?
(A)$2,625
(B)$3,000
(C)$2,250
(D)$1,875
19.A property owner applies for a Greenbelt agricultural classification. What is the primary requirement for this classification?
(A)The property must be used for commercial agricultural purposes
(B)The property must be at least 10 acres in size
(C)The property must have a minimum of $1,000 in annual agricultural income
(D)The property must be located in a designated agricultural zone
20.A property valued at $240,000 is assessed at 40% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?
(A)$19,200
(B)$4,800
(C)$1,920
(D)$192

Answer key & explanations

1. D — The Greenbelt agricultural classification reduces the assessed value of property based on its agricultural use, which in turn reduces the property tax.
2. D — The Save Our Homes 3% cap limits the annual increase in a property's assessed value to 3% or the percentage change in the Consumer Price Index, whichever is lower.
3. D — Assessed = $230,000 × 100% = $230,000. Tax = ($230,000 ÷ 100) × 3 = $6,900.
4. D — Assessed = $320,000 × 25% = $80,000. Tax = ($80,000 ÷ 100) × 3 = $2,400.
5. D — The primary benefit of Greenbelt agricultural classification is a reduction in the property's assessed value, resulting in lower property taxes.
6. D — The documentary stamp tax is $0.70 per $100 of price. $250,000 / $100 = 2,500; 2,500 * $0.70 = $1,750.
7. A — Documentary stamp tax on notes is $0.35 per $100. $200,000 / $100 = 2,000; 2,000 * $0.35 = $700.
8. D — In a residential sale, the seller customarily pays the documentary stamp tax on the deed.
9. C — Assessed = $310,000 × 25% = $77,500. Tax = ($77,500 ÷ 100) × 2 = $1,550.
10. D — Assessed = $160,000 × 25% = $40,000. Tax = ($40,000 ÷ 100) × 2 = $800.
11. C — The documentary stamp tax rate on notes in Florida is $0.35 per $100. For example, a $100,000 note would incur a tax of $100,000 * $0.35 / $100 = $350.
12. D — Assessed = $280,000 × 25% = $70,000. Tax = ($70,000 ÷ 100) × 2 = $1,400.
13. D — An involuntary lien, such as a tax lien, is created when a property owner fails to pay property taxes, and the government places a lien on the property to secure payment.
14. D — The Save Our Homes exemption limits the increase in assessed value to 3% per year, or the rate of inflation, whichever is lower.
15. C — The Greenbelt agricultural classification reduces the taxable value of a property based on its agricultural use, thereby reducing the property taxes owed.
16. A — Assessed = $360,000 × 40% = $144,000. Tax = ($144,000 ÷ 100) × 2.5 = $3,600.
17. C — The Truth in Millage notice is sent to inform property owners of the proposed millage rate and its impact on their taxes.
18. A — The documentary stamp tax on notes is $0.35 per $100, so $750,000 * $0.35 / $100 = $2,625.
19. A — The primary requirement for a Greenbelt agricultural classification is that the property must be used for bona fide agricultural purposes, which can include commercial agricultural activities, but the specifics of the requirements can vary, with the core idea being the active use for agriculture.
20. C — Assessed = $240,000 × 40% = $96,000. Tax = ($96,000 ÷ 100) × 2 = $1,920.

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