Property taxes are a reality to most homeowners, especially when they are due. This set amount the government collects from you each year is directly reliant on the value of your property. The worth of your home will always vary due to surrounding economics, but the basic rule is: the more it cost, the more taxes will be due for it each year. This is why correct property assessments are vital.
Property values are tricky to pinpoint since the market rises in combination with neighborhood values. Know if your property assessment is correct and if it is negatively affecting your taxes by causes you to hand out way more money than legally needed.
Understanding Property Taxes
Property Taxes are based on the needs of a City, State, and Country, and they are used for important community needs such as schools, libraries, local government budgets, roads or other public property or benefits.
All of these items have their own percentage to be taken from the assessed value of your home. The number amounts each percentage creates combines to determine the complete property tax you owe each year. Online property tax calculators are available for those who have a rough estimate of their property value and want to get a good idea of what kind of costs to expect.
How is the tax rate calculated?
A property tax bill is calculated by using three main factors: the assessed value of the property, exemptions the owner falls under, and the overall property tax rate.
Knowing the equation for property tax will give you an idea of how much you will owe at the end of the year. However, all of these factors can vary from place to place and the total will fluctuate over time for each individual property owner. Since states and counties have their own regulations and determining factors, research your area tax rates for more details.
Property Use
The way an owner uses the land will matter and directly affect the tax bill. There are different sub-categories the property could fall under These are: agricultural, office, residential, commercial, apartment, or vacant lot.
Religious buildings could be exempt from property taxes. The size of the property itself as well as the size and condition of existing structures will also affect your totals.
Property Assessments
A property assessment is an evaluation of the land and structures on it which produces a number value. These are done annually, but some states opt for them every 2 years.
Many might not agree with their property assessment. The first step is deciding if the assessor did not follow protocol, or there are other reasons to believe the figure is off.
Over Assessment
An over-assessment is one of the hardest matters to fight. This will cause you to pay more taxes, than if the house was assessed at its actual value. A common cause of this can be including property that is not yours, or ignorance of a hidden factor which degrades your property value, such as interior structural issues or mold.
Under Assessment
An under-assessment will need solved a lot sooner, so you do not get behind on property taxes. If an under-assessment is found years after the disremprency, the owner will still owe all the back-taxes, even if it was not their fault the home was under-assessed.
Rebute an Assessment
Contacting the county assessor's office is the first step, they can decide if there are any discrepancies. Errors are not very common, but it is not impossible. File this dispute within 2 weeks to 30 days. If a factor is not considered, it is important to get that aspect accounted for to correct the evaluation.
Finding legal help is another step in making sure all bases are covered, and all tax exemptions are utilized. An HST Lawyer, that deals with harmonized sales tax, can help give guidance is you are disputing property taxes, or even researching the sales taxes paid on your property.
The final resort should be taking it to court. If you believe the difference in your property evaluation that is important or substantial, and the county assessor’s office refuses to acknowledge the issue in an assessment, be sure to research your situation and contact a legal professional. If this issue is affecting your tax costs, you could be entitled to reimbursement of those costs, potentially including the difference on past evaluations.
Final Thoughts
Property taxes must be paid or the land owner can be faced with excessive fines, and even jail time. Since property assessment plays a large part in this amount due, be sure the report is correct. Always have a trusted appraisal done and follow the steps outlined if you think there are any disremprecies. If damage comes to your home and the value is diminished in the middle of the year, seek help with disaster tax relief.
