Property taxes sneak into your pocket and devastate your real estate investment strategy – they can be hidden or camouflaged, or they can appear to be a blessing. Some may affect you personally, while others may surprise you with their simplicity.
- Property taxes are a significant source of revenue for local governments. The proper rates are decided by various boards, councils, and legislatures. They hold budget hearings to determine how much money is needed to provide the many services that the community requires. Property taxes provide for services including education, transit, emergency services, parks, recreation, and libraries.
Although the ultimate destination of your property tax bill may vary by state and even by county, one thing is true: In many—if not most—states, school districts receive the largest portion of property tax revenue. This is due to those districts’ reliance on property taxes for funding. (State governments, which generally receive the second-largest share of property tax revenue, tend to be less dependent on it.)
- Your property taxes help pay for local services and improvements that benefit you and your community. Property tax dollars are spent locally; they generally do not pay for federal or state programs. They fund schools, roads, libraries, police, fire departments, and municipal services.
Here’s how things work: When a local government needs funds to provide essential services or build new infrastructures such as schools or roads, it calculates the amount of money needed and issues bonds – an obligation to repay with interest – to cover the costs. The government levies property taxes on citizens based on their homes’ value to cover interest payments and ultimately repay the bond principal.
- Property taxes that are not paid on time are subject to interest and charges, and the government may place a lien on your home if you do not pay them. If you sell your home while a lien encumbers it, any proceeds go toward the unpaid property taxes. Find out if it’s time to relocate if your property taxes are spiraling out of control.
- If you feel that your assessment is unfair, you can appeal it. Here are some common tax exemptions available in many areas:
Homestead Exemption – If this property is your primary residence, you may be able to reduce the taxable value of your property by a certain amount.
Veterans Exemption – This exemption may apply if you are a veteran who has been honorably discharged from active duty or if you are the surviving spouse of a veteran who died on active duty.
Disability or Blindness Exemption – A portion of the appraised value of the property could be exempted depending on your disability. It could be completely exempt if you are blind. You can find out whether these and other exemptions apply to your situation by visiting the website for your county’s appraisal district.
There are certain circumstances that may allow you to get an exemption that reduces your taxable amount or even eliminates it altogether. Learn more at https://propertyvaluationservices.net/.
Lowering your property tax bill is about much more than getting a deal. It’s about getting the best deal for you. Give it a shot. You might just find that the value you get out of it far outweighs the cost.
Author’s Bio:
William Ross may not be a lawyer by profession, but he’s one of the sharpest writers out there when it comes to property tax and valuation. Armed with considerable knowledge and gifted with impeccable writing skills, he can surely deliver engaging property-related content.
