Homeowners pay taxes on their real estate to fund local
services. Renters, too, pay property taxes, as they’re rolled into monthly rent
charges. The property taxes we all pay go to sustain libraries and schools, emergency
services, environmental projects, sewer work and road maintenance.
How much is one property’s share? To determine this amount, an
assessor multiplies the local tax rate by a property’s value. Many assessors’
offices use discounted values of properties when coming up with their tax
assessments, not the full market price; still, property taxes often amount to
thousands of dollars each year. With local governments determining them, rates
vary from county to county, and big cities generally collect higher
property taxes than suburban developments or country towns do.
Home shoppers need to check the property tax when perusing a
listing, and include that tax in the cost of owning a particular home. Plus, they
should expect a possibly higher tax after buying the home, as there could be a
new assessment when the deed changes hands.
A homeowner’s mortgage account may hold money aside in
escrow. Of course, the owner pays into the escrow account — but this way, the
owner’s taxes will be continually kept up to date without the owner having to
remember to submit a payment each time local taxes are due.
Continue reading “How Not to Overpay Your Property Taxes”