The property tax may be the fairest and, at the same time, the not so fair tax collected by municipalities.
Two of the determining factors of how it can affect what a person will pay for this type of tax are where they live and the economic situation of the person.
Although we can all appreciate the advantages of owning a home vs. renting, when it comes to property taxes, renting is by far the best option. States will collect property taxes on the following:
Any additions to the property, such as land improvements.
The land itself
Any structure that is not permanent for the property.
The appraisal is commonly performed by a dedicated county tax collector in each state. An individual’s property and land will be appraised based on value and subsequently mailed as a tax payment notice. Typically, this is paid for through the owner’s escrow amount listed on your mortgage.
Many times this can negatively affect the owner of a property or land, as taxes in a specific state can sometimes double or triple the amount and leave the owner unable to pay their taxes, forcing them to sell their property or land. .
People with fixed incomes, such as seniors who have retired, can be hit hard by the property tax increase. The value of their homes increases, but at the same time they are unable to pay their taxes due to the reduction in their income. Unfortunately, the property tax does not allow much leeway in the event of acts of nature or personal tragedy.
Although 2.3 seems to be the average percentage for property tax, it varies a lot from state to state, so it seems very unfair for certain states like New Hampshire as it is 4.9 percent.
It also seems unfair when states like Alabama pay 1.3 percent and yet at a short distance in neighboring Georgia they would be required to pay 2.6 percent, and then even more in Florida at a rate of 3, 1 percent.
So who determines how the money generated from this income is spent or in some cases wasted? State legislatures will determine this along with the decision to increase or decrease the property tax and how often it is collected.
Although property tax can absolutely help states with income, the amount of property tax to pay can be a determining factor in deciding where to reside to achieve the American Dream of land or home ownership. .