Why is property tax higher in some areas than others? Is it computed in the total cost of the house?
2006-12-14 10:41:38 · 5 answers · asked by lovelyeyes 1 in Business & Finance ➔ Credit
If you itemize in your tax return, property taxes usually are included on the tax form.
If you cannot figure it out, call your local tax preparer to make sure you are doing it right.
Property taxes are figured by the value of your property - that includes the house, any other structures (garage, shed, etc.), and the acreage. This is why property taxes are different.
A house in downtown Manhattan, NY is way more expensive on taxes than a mansion in Whittier, NC. Prime real estate is the determining factor.
2006-12-14 10:49:13 · answer #1 · answered by Ambassador Z 4 · 0⤊ 0⤋
Property tax is on real estate. It is usually a percentage of the estimated appraised value. Each county or city sets their own tax rate. Larger cities typically have higher property taxes. Areas such as New York City have very high taxes. Some have tax rates higher than many will pay in a mortgage.
2006-12-14 19:12:43 · answer #2 · answered by Flyby 6 · 0⤊ 0⤋
Property tax is based on the assessed value of your real estate. Some states also have personal property tax which includes things like computers, furniture and fixtures (unsecured property). If your property is assessed high, you will pay a lot of property tax. Property tax rates are predetermined for each tax year. Both individuals and businesses pay property tax. Assessments can be appealled based on condition of the property or neighborhood, and for businesses, tenancy or profitability. Property taxes are used to pay for many things including public utility districts but are predominately used to pay for public schools. If you are in a good school district, you may pay high taxes because of it.
2006-12-14 19:57:33 · answer #3 · answered by PF32 2 · 0⤊ 0⤋
Property tax is paid to the county and varies based on roads, public facilities etc in each county. It is computed as a percentage of the home when purchased.
Here is some additional info. Hope this helps.
2006-12-14 19:15:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Property tax is a yearly tax you pay to the county. It helps pay for roads, police, fire, drainage ditches, etc.
most people choose to have their mortgage company collect it MONTHLY as part of their payment, and then the mortgage company pays the county the taxes either once or twice per year. (some divide it in half and pay it twice.).
Your taxes are based on a formula multiplied by the assessed value on your home. (The county assesses it based on town, square footage, year built, lot size, etc.)
In my town, the average taxes are $2500 per year. So this adds OVER $200 a month to your house payment to stay current.
2006-12-14 19:11:15 · answer #5 · answered by Anonymous · 1⤊ 0⤋