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Property Tax
When purchasing a home or investing in real estate, property taxes are an important aspect to consider. These taxes play a vital role in funding local services like schools, emergency services, and infrastructure. Whether you own a residential home or commercial property, understanding property tax helps you prepare for the financial responsibilities that come with ownership.
What Is Property Tax?
Property tax is a recurring fee imposed by local governments on real estate owners, typically collected either annually or semiannually. It is an ad-valorem tax, meaning the amount is based on a percentage of the property's assessed value.
This tax serves as a primary funding source for many local governments. The revenue generated supports vital community services.
A Simple Guide to Property Tax
Property tax applies to individuals or organizations, like businesses, that own real estate. This includes primary residences, vacation homes, rental properties, and commercial buildings. Renters, however, are not directly subject to property tax for their leased homes or apartments.
This tax is often considered regressive, meaning the same rate applies to all property owners, regardless of income level. As a result, it can disproportionately affect those with lower incomes.
The tax amount is determined by the value of the property, including both the land and any structures.
How is the property tax calculated?
Assessors calculate the tax on the property or parcel based on the total area of the lot shown in the recorded survey, and the type of improvements on the lot.
NOTE! The tax is calculated differently for the lot and finished or unfinished areas of a building. This is why you'll see the area of a building listed in the Assessor's office showing only the finished areas of the building.