Property Tax 101 - Bookkeeping Centrum LLC

What is it?

Property tax is levied primarily on a person’s property (land, buildings, houses, etc., as well as tangible personal property such as vehicles and equipment), whether natural or juridical.

Normally this tax is considered a regressive one. You should keep in mind that this is only one of many other expenses that must be taken into account if you own one or more properties.
Property taxes are the largest source of state and local revenue in the country and help fund schools, roads, and other community services and projects. It is worth mentioning that the property tax can vary greatly depending on the state you are in.

Who calculates it?

The property tax is calculated by the local administration where the property is located and is paid by the owner of the property. To calculate the tax, it is usually based on the value of the property, including the land on which it is located. It is a tax assessor who calculates the market value of all the properties in his jurisdiction, depending on the state and municipality where the property is located, that is why when buying a property, it is important that you carefully examine the applicable tax legislation.

How is it calculated and paid?

This is determined by multiplying the tax rate by the current market value of the properties in question. The municipality where the properties are located should have a tax assessor who can assess them. It is usually recalculated annually by the tax authorities.