In Utah, a primary residence receives a residential exemption that reduces its taxable value. After applying the residential exemption under Utah Code Ann. § 59-2-103, what percentage of fair market value is used as the assessed (taxable) value for a qualifying primary residence?
Correct Answer
D) 55% of fair market value
Under Utah Code Ann. § 59-2-103, a qualifying primary residence receives a 45% residential exemption, so the property is assessed (taxed) on 55% of its fair market value.
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Related Topics & Key Terms
Key Terms:
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
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In Utah, how is a primary residence assessed for property tax purposes under the residential exemption?
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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:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → 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?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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