Property Tax Considerations
Property taxes are fees imposed by local governments on real estate properties. These taxes are typically based on the property’s assessed value, which is determined by the local tax assessor. It’s important to know how these taxes work because they can significantly affect your overall cost of homeownership. The primary purpose of property taxes is to fund local services such as schools, roads, and emergency services. Thus, a clear understanding of property tax obligations helps you plan your finances better. Many homeowners face surprises during tax season, so being informed can save you from unexpected expenses. Types of Property Taxes There are various types of property taxes you might encounter. Here are a few common categories: Ad Valorem Taxes: These are based on the property’s assessed value. Special Assessments: Fees for specific local improvements, like a new sidewalk. Transfer Taxes: Fees charged when ownership of a property changes hands. Each type serves a differe...