Paying taxes is never fun — and there are certainly many of them out there. Property tax often leaves homeowners grinning and bearing as they drop the check in mail. Many homeowners are fed up with property taxes because they are left wondering: How is my property taxed?
Hopefully, this brief overview will answer that question and give you an idea of where your money is going.
What Are Property Taxes Used For?
Property taxes make up a large amount of the revenue that is given to local governments to use. This money is put forth to fund a number of public services, including, but not limited to:
– Public transportation
– Education
– Parks and recreational activities
– Emergency services
How Is My Property Tax Calculated?
Two major components are factored in order to determine what amount you pay in property taxes: the assessed property value and mill levy. Here is what those terms mean.
Assessed property value: This estimate is made every year and takes into account local real estate conditions. The assessed property value estimates the market value for your home.
Mill levy: This is just lingo for the tax rate. Mill levies differ from area to area. One mill is equivalent to $1 out of every $1,000 of your assessed property value. You might often see in local elections where residents are asked to vote for a millage increase, which would increase property taxes and, subsequently, the revenue available to the local government.
Contact A Local Accountant
Still left wondering: How is my property taxed? Accounting professionals are experts at all things tax-related, and are the perfect resource when you run into issues with your property or other taxes. TalkLocal makes it easy for you to locate such a professional. Simply visit our web site, provide a few details about the services you require, and you will have up to three professionals calling you within minutes.
