Property taxes are the annual taxes levied by the local government on a property. Property tax assessment is done based on the locality, area and the occupancy status. Payment of this tax is important as the funds generated are used for various works. Let us see the steps to calculate this tax.
Calculation of property tax Generally, this tax is calculated on the prevailing value of a property. Before calculation, one must assess its worth by considering the existing value of land and construction. The value also depends on the period for which one has possessed the property. One can know the existing rates from the municipal corporation of the area. It varies according to jurisdiction. Normally, authorities publish the rates on the website of the respective municipalities. One must know the exemption rules that will help reduce the tax amount. Senior citizens and disabled people are eligible for deductions. In the final step, one needs to multiply the tax rate by the final amount. Many real estate developers help clients to estimate property tax. In many real estate companies, there are legal professionals who help customers understand the legal aspects of this tax. It is important to pay property tax on time. Failure to do so can result in fines and in some cases even foreclosure. It also results in a bad credit score. For any clarification or doubt, it is handy to take legal advice.
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