|
| |
| Credit Counseling Home » USA » Property Tax |
|
|
Property Tax US |
US Property Tax is an ad valorem tax, which is usually levied by local government, at county or municipal level. There are two kinds of Property: Personal Property and Real Property. All movable property is personal property while the land and the improvement to it that is permanent comprise real property. Some states do not levy tax on personal property, but the real property is taxed in all states of the United States . The value of real property is assessed before the determination of property tax In the US, because it is the assessed value of real property that provides the base for US Property Tax Computation.Property Taxes by StateAlthough assessment or appraisal of real property is performed at local level, the state usually supervises the whole process in order to maintain uniformity in tax levy across the state and ensure compliance of state property tax laws. Tax assessor offices maintain databases of assessed real estate and property tax records. Besides, property tax maps are created and maintained, which show individual properties marked with unique parcel identifiers. The officials who collects real estate taxes are usually referred to as Tax Collectors.Property Valuation |
| |
There are three accepted methods of property valuation and a real estate appraiser or assessor can make use of any one or more of these. The three approaches are income approach, market value approach and replacement cost approach. Assessment is performed at 100 percent of market value. There is also a provision in each state to make an appeal before a specific property tax appeal board in case you are not satisfied with the way your property is assessed.Property Tax RatesThe assessed value of real property is then processed with an established property tax rate to compute the tax due. The property Tax rate is often expressed as millage rate or mill levy. A mill is equivalent to 1/1000 of a federal dollar. The Property Tax is calculated by multiplying the assessed value of the property by the current mill rate and then by dividing the product by 1,000.
It is the taxing authorities at local levels, such as county commissioners, city council members etc. that determine the extent of millage rate in a particular taxing jurisdiction. Moreover, the US Property Taxes serve as the chief sources of finance for local governments, such as counties, municipalities, school districts and special districts. The revenue generated thus is used to fund budgets for police, schools, hospitals, sewers, road, fire stations, garbage disposal, parks libraries and so on.
|
|
|
|