Tax Structue
Assignment 4: Tax Structure
Julian Hoggard
Strayer University
PAD 505 Public Budgeting and Finance
Dr. William H. Kraus
Dec. 2, 2012
Habitat for Humanity is a non profit organization that uses volunteer labor, donated materials from churches and other organizations to build new housing for low-income families. Habitat for Humanity has built over 45,000 homes throughout the nation and over 150,000 homes worldwide. The goal of the organization is to eliminate poverty and homelessness by providing low income families with housing opportunities. In this paper, you will see how you would quantify the amount of percentage of property tax revenue that comes from owners of Habitat for Humanity houses in a particular municipality, arguments in favor and against giving a property tax break to owners of Habitat Humanity homes, and the best way to resolve the problem discussed in this case.
Explain how you would quantify the amount or percentage of property tax revenue that comes from owners of Habitat for Humanity houses in a particular municipality. Many provisions of property tax law affect affordable housing. Property taxes are based on a property’s assessed value. If the property is built and the property value rises drastically, the property tax bill is also going to rise. In order to correctly assess the amount of property tax revenue that comes from owners of Habitat for Humanity homes, the market data or comparable sales approach can be used to estimate the value of a home by comparing it to similar properties. The market approach uses information directly produced by the market about how property owners value properties (Mikesell, 2010). Property tax in dollar terms is calculated by taking the assessed property value and the mill rate, which is the amount of tax payable per dollar of the assessed value of a property, and dividing by 1,000. A property may be subject to tax by a number of different authorities, mill rates are set by
Julian Hoggard
Strayer University
PAD 505 Public Budgeting and Finance
Dr. William H. Kraus
Dec. 2, 2012
Habitat for Humanity is a non profit organization that uses volunteer labor, donated materials from churches and other organizations to build new housing for low-income families. Habitat for Humanity has built over 45,000 homes throughout the nation and over 150,000 homes worldwide. The goal of the organization is to eliminate poverty and homelessness by providing low income families with housing opportunities. In this paper, you will see how you would quantify the amount of percentage of property tax revenue that comes from owners of Habitat for Humanity houses in a particular municipality, arguments in favor and against giving a property tax break to owners of Habitat Humanity homes, and the best way to resolve the problem discussed in this case.
Explain how you would quantify the amount or percentage of property tax revenue that comes from owners of Habitat for Humanity houses in a particular municipality. Many provisions of property tax law affect affordable housing. Property taxes are based on a property’s assessed value. If the property is built and the property value rises drastically, the property tax bill is also going to rise. In order to correctly assess the amount of property tax revenue that comes from owners of Habitat for Humanity homes, the market data or comparable sales approach can be used to estimate the value of a home by comparing it to similar properties. The market approach uses information directly produced by the market about how property owners value properties (Mikesell, 2010). Property tax in dollar terms is calculated by taking the assessed property value and the mill rate, which is the amount of tax payable per dollar of the assessed value of a property, and dividing by 1,000. A property may be subject to tax by a number of different authorities, mill rates are set by
References: Habitat.org. (n.d). How to apply for a Habitat for Humanity House. Retrieved from http://www.habitat.org/getinv/apply.aspx Habitat.org. (n.d). Habitat for Humanity fact sheet. Retrieved from http://www.habitat.org/how/factsheet.aspx Assignment 4: Tax Structure. Anti Essays. Retrieved December 2, 2012, from the World Wide Web: http://www.antiessays.com/free-essays/286438.html Investopedia.com. (n.d). Retrieved May 26, 2012 from http://www.investopedia.com/terms/m/millrate.asp#axzz1vvngKSSA Johnson, N., & Williams, E. (2010, May 3). Some States Scaling Back Tax Credits for Low-Income Families. Retrieved from http://www.cbpp.org/cms/?fa=view&id=3172 Lee, E. (2012, February 16). Homeowner’s Tax Deductions. Retrieved from http://www.ehow.com/about_4759164_homeowners-tax-deductions.html Mikesell, J. L. (2010). Fiscal administration: Analysis and applications for the public sector (8th ed.: 2010 custom edition). Mason, OH: Cengage Learning.