Property taxes may be assessed at either the state or local level and are usually used to support services such as public schools and libraries, fire and police services, roads, health programs, and parks.
Are there different types of property taxes?
There are basically two types of property for tax purposes: real and personal.
Can property be exempt from taxation?
Some property may be exempt, not subject to tax, depending on the tax laws of the jurisdiction in which the taxes are assessed. However, most real and personal possessions are subject to property taxes based on the type of property classification and its value.
How is property value determined for tax assessment purposes?
Property value is often determined by what a typical buyer is likely to pay and may fluctuate with inflation or local economy. Once the value of possessions has been assessed, the tax rate is applied, and the taxes must be paid to the appropriate taxing authority by the date established. Payment due dates are usually set by the jurisdiction in which the taxes are to be collected, and penalties for late or non-existent payments also vary by location. For sales of real property, taxes are often collected at the time of the transaction.
If you'd like more information on the assessment or payment of property taxes, consult a tax professional.