The empirical evidence indicates that the property tax is the local tax par excellence, and it has the advantage that it is collected relatively quickly. The tax base is visible, immovable and tends to reflect the taxpayer’s ability to pay. The administrative and legal basis of the tax is the fiscal cadastre, which is the key not only to collect the property tax but also to associate the property with the cost of providing essential services to each property according to land use. It is mainly from the collection of taxes that a State can collect and carry out different works or make decisions, especially in those related to the redistribution of wealth.

Does everyone pay property tax?

The general rule of thumb is that all real estate owners pay property taxes. However, some states and counties make exceptions for veterans and people 65 and older. In some cases, they do not have to pay taxes. In others, they only have to pay a smaller amount.

Property appraisal

To determine your real estate tax value, the first thing the legal authority does is appraise your property. It consists of estimating the value of the real estate to arrive at the tax base. Once the appraised value is reached, a percentage is applied to arrive at the tax amount. 

Cost – The value of the land and structures are considered to make the appraisal. The sum is subtracted from the depreciation of the facilities over time. It is often used for unique properties, which have no comparison.

Sales comparison – The property’s value is arrived at by looking at the sale price of neighbouring properties. It is the most common method.

Income – For income-generating properties, a process called compounding is used. It assesses your income potential. This valuation method is used for apartment complexes, warehouses, and shopping centres.

What can I do if I disagree with the appraisal?

You can contact the appraisal authority to complain or hire a professional tax property tax advisor to do California property tax assessment. The letter with your estimate will contain the deadlines and procedures to claim the tax administration of your locality. It is essential to show evidence of why you believe the appraisal was in error. So be prepared and do not wait until the last day to collect evidence. Often this test consists of the sale price of neighbouring properties. There are deadlines to claim the appraisal from the county. If you do not comply with them, you must go to court or have no choice but to accept the resolution.

What increases property taxes?

Homeowners will be subject to a higher tax in the following cases –

Increase in the tax rate: Counties raises the tax rate when they have to generate more income to cover their expenses.

Increase in the value of the property: Property values ​​tend to go up over time. It will also do it if you make improvements such as adding a bathroom, a deck, a room, a garage, or deciding to finish the basement. In addition, property taxes go up on the sale of a property. The county will likely use the sale price of the public deed to justify the increase. Because of this, property tax from previous years will not always be a good indication of how much money you will have to pay if you buy a home.

Talk to a qualified property tax expert.

This article is intended to be helpful and informative, but legal matters can be complicated and stressful. A qualified real estate property tax expert can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local property tax assessment advisor to discuss your unique legal situation.

By Richard