Property Tax Experts
| Copyright © 2007 LowTaxRate.com |
For taxpayers who
may be experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax Poverty
Exemption Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
may be experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax Poverty
Exemption Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
State property tax systems typically follow one of two policies:
In virtually every state, the property tax follows a market-value based
system under which property is taxed on the basis of its fair market value.
The concept is commonly understood to represent the price the property
would bring at a fair, voluntary sale. In other words, the value at which
the property would change hands between a willing buyer and a willing
seller, neither being under any obligation to buy or sell and both having
reasonable knowledge of relevant facts.
The extent to which a given parcel or item of property is subject to
taxation is generally dependent on several issues. The first is whether the
property constitutes real property, tangible personal property, or
intangible property. Next is who owns the property and to what use the
property is put, because that ownership and/or usage may dictate that the
property is entitled to full or partial exemption from taxation.
State definitions of "real property" generally include land, any
improvements permanently attached to the land, as well as all rights and
benefits from ownership of any lifetime or greater interests in such land
improvements. "Personal property" is generally defined by way of
exclusion, with all property other than that falling within the definition of
real property being considered personal property.
The distinction between tangible and intangible property is then commonly
made by considering any item of personal property that may be seen,
touched, or moved about to be tangible personal property. The following
definitions are representative of the law in most states.
Real Property - means land, an improvement, a mine or quarry, a mineral in place,
standing timber, or an estate or interest in any such property.
Personal property - means property that is not real property.
Tangible personal property - means personal property that can be seen, weighed,
measured, felt, or otherwise perceived by the senses, but does not include a
document or other perceptible object that constitutes evidence of a valuable interest,
claim, or right and has negligible or no intrinsic value.
Intangible personal property - means a claim, interest (other than an interest in
tangible property), right, or other thing that has value but cannot be seen, felt,
weighed, measured, or otherwise perceived by the senses, although its existence
may be evidenced by a document.
Who is the taxpayer -
Who owns a given parcel or item of property is important for property tax purposes
because the owner of the property on the assessment date is primarily responsible
for paying the property taxes. The identification of the owner is also important
because property may be exempt from tax or otherwise receive special tax benefits
merely on the basis of who owns the property.
In most cases the owner of the property is straight forward, that being the person on
record as the owner on the date of the assessment. However, there are certain
situations where it is not so clear.
Agents and Assignees - Agents and assignees may be required to pay tax and file
reports on property held in their capacity as such, although their principals and
assignors, respectively, remain primarily liable for the tax.
Joint Owners - Any person holding property jointly or in common can be held liable for
the tax as to the whole property, or as to his or her proportionate interest.
Lessors and Lessees - Generally, because property is taxable to the owner, lessors
are liable for taxes on leased property. However, lessees are not necessarily relieved
of any property tax obligations with respect to leased property, and are frequently held
liable when:
Owners of Severable Interests - The owner of mineral rights, surface rights or crops,
timber, quarry and similar interests that have been separated from the land is usually
liable for tax on those separate interests.
How is the property being used -
State legislatures can, subject to certain limitations, exempt any persons or property
from taxation or provide comparable tax benefits such as abatements, credits, or
reduced assessment ratios. In general the tax benefit must serve a public purpose
and the classification on which it is based cannot be arbitrary. In most cases the
availability of the benefit will be conditioned on the property being used for a specific
purpose.
- That all property, without enumeration, is taxable unless specifically
exempt or
- That only such classes of property as are specifically enumerated
are taxable.
In virtually every state, the property tax follows a market-value based
system under which property is taxed on the basis of its fair market value.
The concept is commonly understood to represent the price the property
would bring at a fair, voluntary sale. In other words, the value at which
the property would change hands between a willing buyer and a willing
seller, neither being under any obligation to buy or sell and both having
reasonable knowledge of relevant facts.
The extent to which a given parcel or item of property is subject to
taxation is generally dependent on several issues. The first is whether the
property constitutes real property, tangible personal property, or
intangible property. Next is who owns the property and to what use the
property is put, because that ownership and/or usage may dictate that the
property is entitled to full or partial exemption from taxation.
State definitions of "real property" generally include land, any
improvements permanently attached to the land, as well as all rights and
benefits from ownership of any lifetime or greater interests in such land
improvements. "Personal property" is generally defined by way of
exclusion, with all property other than that falling within the definition of
real property being considered personal property.
The distinction between tangible and intangible property is then commonly
made by considering any item of personal property that may be seen,
touched, or moved about to be tangible personal property. The following
definitions are representative of the law in most states.
Real Property - means land, an improvement, a mine or quarry, a mineral in place,
standing timber, or an estate or interest in any such property.
Personal property - means property that is not real property.
Tangible personal property - means personal property that can be seen, weighed,
measured, felt, or otherwise perceived by the senses, but does not include a
document or other perceptible object that constitutes evidence of a valuable interest,
claim, or right and has negligible or no intrinsic value.
Intangible personal property - means a claim, interest (other than an interest in
tangible property), right, or other thing that has value but cannot be seen, felt,
weighed, measured, or otherwise perceived by the senses, although its existence
may be evidenced by a document.
Who is the taxpayer -
Who owns a given parcel or item of property is important for property tax purposes
because the owner of the property on the assessment date is primarily responsible
for paying the property taxes. The identification of the owner is also important
because property may be exempt from tax or otherwise receive special tax benefits
merely on the basis of who owns the property.
In most cases the owner of the property is straight forward, that being the person on
record as the owner on the date of the assessment. However, there are certain
situations where it is not so clear.
Agents and Assignees - Agents and assignees may be required to pay tax and file
reports on property held in their capacity as such, although their principals and
assignors, respectively, remain primarily liable for the tax.
Joint Owners - Any person holding property jointly or in common can be held liable for
the tax as to the whole property, or as to his or her proportionate interest.
Lessors and Lessees - Generally, because property is taxable to the owner, lessors
are liable for taxes on leased property. However, lessees are not necessarily relieved
of any property tax obligations with respect to leased property, and are frequently held
liable when:
- they are in possession of the leased property and the assessor is unable to
determine who the lessor is or where the lessor can be located; - they make improvements to the leased property that increases its value;
- they lease property from an exempt entity such as the state or municipality; or
- when the lease is of such an extended duration that it is considered a
permanent or perpetual leasehold.
Owners of Severable Interests - The owner of mineral rights, surface rights or crops,
timber, quarry and similar interests that have been separated from the land is usually
liable for tax on those separate interests.
How is the property being used -
State legislatures can, subject to certain limitations, exempt any persons or property
from taxation or provide comparable tax benefits such as abatements, credits, or
reduced assessment ratios. In general the tax benefit must serve a public purpose
and the classification on which it is based cannot be arbitrary. In most cases the
availability of the benefit will be conditioned on the property being used for a specific
purpose.
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Your notice of
assessment is
explained below;
though every
municipality has a
different format this
section explains the
important information
applicable to all
assessment notices.
The notice usually will
have the words THIS
IS NOT A TAX BILL
in bold letters at the
top of the page and
typically is mailed a
few months before
your actual tax bill.
assessment is
explained below;
though every
municipality has a
different format this
section explains the
important information
applicable to all
assessment notices.
The notice usually will
have the words THIS
IS NOT A TAX BILL
in bold letters at the
top of the page and
typically is mailed a
few months before
your actual tax bill.
Taxable Value
Often referred to as taxable value or assessed value this is what your
local taxing authority has set as the value at which your local tax rate will
be multiplied. Your statement should show side by side, this year’s taxable
value compared to last year’s taxable value. This will show you how much;
according to the local tax assessor your property has either risen or
lowered in value.
Why is this so important?
Since it is impossible to lower your local tax rate on your own without a
general election, the only thing we can influence is the taxable value of
our home. The lower the value, the lower the tax..
Property Identification
It is important to take note of your property identification number and the
legal description printed on your notice. This will be helpful should you
need to reference the property with your assessor, file any dispute
paperwork or look at your property record card.
Example of property identification:
11-22-33-444-555
Example of your legal description:
TIN T1 1W SEC 99 ABC DEVELOPMENT SUB 99 OF LOT 1
Property Classification
Often one of the most overlooked aspects of an individuals notice. An
obvious mistake would be if your home was classified as industrial. For
vacant land owners it is important to be sure you are not classified as
improved residential. In addition to the right type of classification take
notice if your property has any exemptions.
examples of exemptions:
Often referred to as taxable value or assessed value this is what your
local taxing authority has set as the value at which your local tax rate will
be multiplied. Your statement should show side by side, this year’s taxable
value compared to last year’s taxable value. This will show you how much;
according to the local tax assessor your property has either risen or
lowered in value.
Why is this so important?
Since it is impossible to lower your local tax rate on your own without a
general election, the only thing we can influence is the taxable value of
our home. The lower the value, the lower the tax..
Property Identification
It is important to take note of your property identification number and the
legal description printed on your notice. This will be helpful should you
need to reference the property with your assessor, file any dispute
paperwork or look at your property record card.
Example of property identification:
11-22-33-444-555
Example of your legal description:
TIN T1 1W SEC 99 ABC DEVELOPMENT SUB 99 OF LOT 1
Property Classification
Often one of the most overlooked aspects of an individuals notice. An
obvious mistake would be if your home was classified as industrial. For
vacant land owners it is important to be sure you are not classified as
improved residential. In addition to the right type of classification take
notice if your property has any exemptions.
examples of exemptions:
- “Homeowners Principle Residence”
- “Qualified Agricultural Property”
- “Qualified Forest Property”
- “Industrial Personal”
- “Commercial Personal”
| What is a Property Tax Assessment? |
You can have a Lord, you can have a King, but the man to fear is
the tax assessor.
~ Anonymous citizen of Lasgash
the tax assessor.
~ Anonymous citizen of Lasgash
