If you are a homeowner, you're probably all too familiar with real estate property taxes. If you are looking to buy a home, you need to acquaint yourself with what such taxes are all about.
Property tax is used for the needs of a specific area ? whether it's a town, county, village, or city ? to pay for everything from firefighters? salaries to road repairs to improving the schools. The tax is determined by combining the property tax rate with the assessment of the property as conducted by an authorized assessor. Therefore, if you move into a community with an eight percent property tax rate and your home is assessed at $300,000, your property tax would be $24,000 ($300,000 x 8 percent). While the tax rate is set, the assessment is subjective. The assessor can value a property based on a number of factors including, but not exclusive, to:
The sale price of similar properties in the area; The cost necessary to replace the property; The potential value of the property if it is used to make money through rental, sale, or other legal and approved means; The historical value of the property.
Therefore, you can contest the assessment of a piece of property by contacting your local tax assessment office or tax board. These offices can also provide information on how to go about such a process. But first, talk with your neighbors and find out at what prices their homes are valued. Also talk with recent buyers, sellers, and realtors to get an idea of what the assessments and property taxes are for other homeowners in your neighborhood.
No comments:
Post a Comment