RELATED SEARCHES
Sponsored Property Tax Results:
Property Tax: Rates, Market Value, Appeal, Real Estate Appraiser And Real Estate Appraisal
By:
Published: September 19, 2007
The property tax is the amount or sum of money imposed by the government on a property based on its market value. Basically, taxes are levied on real estates and man-made properties including structures, natural resources, cash and bonds. A property tax rate can either be fixed or an ad valorem.
Ad valorem means that the property tax rate is based on the assessment of the property's market value. In the case of land and the improvements done to it, the assessment is called real estate appraisal. Real estate appraisal is key in determining the value and appeal of a property.
Since property tax is applied to all forms of properties, everybody in a certain locality is bound to bear the duty of paying this type of tax -- from the building and landowners, workers to tenants. They are all responsible in giving their share based on what the laws in their area dictate.
When computing the property tax, the property tax is equivalent to a certain percentage of the property value. Hence, to determine how much property tax a person should pay, he or she needs to multiply the value of his real estate to the property tax rate. This rate varies depending on the laws of the state or municipality.
Property tax plays a significant role in running the government and many social institutions such as the public schools, hospitals, libraries, and parks. This tax people pay to the government goes to the cash reserves. This is used to fund the government projects, which are necessary for the survival and education of its citizens. Thus, the amount of tax revenue is an important factor on how efficient the authorities run the government and improve people's quality of living.
The importance of property tax does not merely end in running the government and completing its projects. It is also necessary for economic development. The property tax is a means to generate more economic activities, helping the small and local entrepreneurs. More dynamic economic activities are tantamount to having more job opportunities, road improvements and financial resources.
There are certain trends in tax collection. In 1934, the United States was benefiting a lot from the property tax. It has the biggest share of revenue compared to local and national taxes. However, the increasing growth of the US state and federal governments reduced the significance of property tax in the country. From a 5% share to the gross national product in the 1920s, it declined in the 1950s to only 2.6%. Nevertheless, the revenue from property tax regained its momentum since 1950. From 2.6%, it rose to 2.9% in 1970 only to fall again in 1973.
Since then until the present times, the collection of property tax, which is commonly used by the local government, has been a significant indicator on how it carries its responsibility, particularly in promoting education.
After decades of imposing property tax, many people made an appeal to the government concerning the distributions of tax liabilities. Their dissatisfaction has resulted to exemptions of a number of real properties from taxation. It is because these properties are either owned by religious groups, nonprofit organizations, educational groups or are used for philanthropic purposes.
It is important for property owners and other alike to understand the components of property tax. Being well informed about property taxes and how they affect each person and the surrounding communities and government is essential in today's society of misinformation.
Sources:
Heilbrun, J. (1983). "Who Bears the Burden of the Property Tax?." In The Property Tax and Local Finance, Harriss, C. L. (Ed.). New York: Academy of Political Science.
Thomas, Gerald. "Fence Post." Daily Herald (Arlington Heights, IL). 30 Jun. 2007.
"Taxation." The Columbia Encyclopedia, Sixth Edition, 2004. 52323 pgs.
Aaron, Henry J. "Who Pays the Property Tax? A New View." Brookings Institution, 1975. 110 pgs.
Lynch, Lou. "Understanding Property Taxes in Your Real Estate Market." Ezinearticles. 19 Sept. 2007. http://www.ezinearticles.com/?Understanding-Proper ty-Taxes-in-Your-Real-Estate-Market&id=696276.
Related Articles
Since property tax is applied to all forms of properties, everybody in a certain locality is bound to bear the duty of paying this type of tax -- from the building and landowners, workers to tenants. They are all responsible in giving their share based on what the laws in their area dictate.
When computing the property tax, the property tax is equivalent to a certain percentage of the property value. Hence, to determine how much property tax a person should pay, he or she needs to multiply the value of his real estate to the property tax rate. This rate varies depending on the laws of the state or municipality.
Property tax plays a significant role in running the government and many social institutions such as the public schools, hospitals, libraries, and parks. This tax people pay to the government goes to the cash reserves. This is used to fund the government projects, which are necessary for the survival and education of its citizens. Thus, the amount of tax revenue is an important factor on how efficient the authorities run the government and improve people's quality of living.
The importance of property tax does not merely end in running the government and completing its projects. It is also necessary for economic development. The property tax is a means to generate more economic activities, helping the small and local entrepreneurs. More dynamic economic activities are tantamount to having more job opportunities, road improvements and financial resources.
There are certain trends in tax collection. In 1934, the United States was benefiting a lot from the property tax. It has the biggest share of revenue compared to local and national taxes. However, the increasing growth of the US state and federal governments reduced the significance of property tax in the country. From a 5% share to the gross national product in the 1920s, it declined in the 1950s to only 2.6%. Nevertheless, the revenue from property tax regained its momentum since 1950. From 2.6%, it rose to 2.9% in 1970 only to fall again in 1973.
Since then until the present times, the collection of property tax, which is commonly used by the local government, has been a significant indicator on how it carries its responsibility, particularly in promoting education.
After decades of imposing property tax, many people made an appeal to the government concerning the distributions of tax liabilities. Their dissatisfaction has resulted to exemptions of a number of real properties from taxation. It is because these properties are either owned by religious groups, nonprofit organizations, educational groups or are used for philanthropic purposes.
It is important for property owners and other alike to understand the components of property tax. Being well informed about property taxes and how they affect each person and the surrounding communities and government is essential in today's society of misinformation.
Sources:
Heilbrun, J. (1983). "Who Bears the Burden of the Property Tax?." In The Property Tax and Local Finance, Harriss, C. L. (Ed.). New York: Academy of Political Science.
Thomas, Gerald. "Fence Post." Daily Herald (Arlington Heights, IL). 30 Jun. 2007.
"Taxation." The Columbia Encyclopedia, Sixth Edition, 2004. 52323 pgs.
Aaron, Henry J. "Who Pays the Property Tax? A New View." Brookings Institution, 1975. 110 pgs.
Lynch, Lou. "Understanding Property Taxes in Your Real Estate Market." Ezinearticles. 19 Sept. 2007. http://www.ezinearticles.com/?Understanding-Proper ty-Taxes-in-Your-Real-Estate-Market&id=696276.
Featured Property Tax Products:
