In Utah, how is a primary residence assessed for property tax purposes under the residential exemption?
Correct Answer
B) At 55% of fair market value
Under Utah Code Ann. § 59-2-103, Utah's residential exemption reduces the taxable value of a qualifying primary residence to 55% of its fair market value. This means only 55% of the home's market value is subject to property taxation. Commercial and other non-residential properties are assessed at 100% of fair market value. The exemption applies automatically to owner-occupied primary residences and does not require a separate application.
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Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
More Valuation Questions
In Utah, property taxes are collected by which governmental entity?
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The rapid growth of the 'Silicon Slopes' tech corridor in Utah has most directly affected real estate in which area?
The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
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- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
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- → Which formula best represents the cost approach to appraisal?
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