During a listing presentation in Elizabethtown, Kentucky, a seller tells her agent that she is exempt from paying property taxes because she filed for the homestead exemption under KRS 427.060 last year. The agent knows this claim is incorrect. Which of the following is the most accurate correction the agent should provide?
Correct Answer
B) The KRS 427.060 exemption protects up to $5,000 of home equity from certain creditor claims but does not eliminate or reduce property tax obligations
KRS 427.060 is a creditor-protection statute, not a property tax exemption. It protects up to $5,000 of the value of a debtor's primary residence from levy and sale under execution by certain judgment creditors. It has absolutely no effect on the property owner's obligation to pay ad valorem property taxes. The seller has confused this statute with KRS 132.810, which is the actual property tax relief exemption for seniors and disabled persons.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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- → 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 of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
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- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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