How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Karla Your Own Question
Karla
Karla, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 141
Experience:  Over 17 years performing accounting, tax and consulting service for individuals and small business.
42122963
Type Your Tax Question Here...
Karla is online now
A new question is answered every 9 seconds

In California School Bonds are issued and paid for with a property

This answer was rated:

In California School Bonds are issued and paid for with a property tax assessment on a Ad Valorem basis. They apply to just the school district within the county and not necessarily for all residents within the county. The vaious county assessors assess the value and thus the tax, not the school districts. Do these qualify as deductible property taxes under IRC 164? The regs (1.164-4) state "the real property taxes deductible are those levied for the general public welfare by the proper taxing authorities at like rate against all property in the territory over which such authorities have jusrisdiction" Thanks for any help as well as cititiations you might be able to provided
Hello and thank you for using Just Answer.

The definition of Ad Valorem according to Investopedia is a tax based on the assessed value of real estate or personal property. Ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenue for state and municipal governments. Municipal property ad valorem taxes are also known as "property taxes". So if you apply this definition, all property taxes are Ad Valorem.

We can further apply school bonds to the IRC 1.164-4 that you cite. The California school bonds are approved by the voters in the school district affected by the bonds, so this meets the general public welfare standard. Also, the voter approval gives the property tax assessors the proper taxing authority.

I hope this has helped answer your question.
Karla and other Tax Specialists are ready to help you