Property Taxes

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  • Topic: Property tax, Real estate, Ad valorem tax
  • Pages : 2 (529 words )
  • Download(s) : 473
  • Published : November 26, 2012
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Property taxes – local taxes, immovable property/land tax, motor vehicle tax . (Lukas Szita)

A property tax also known as millage tax is a charge on possessions that the holder is obligatory to pay. The tax is imposed by the governing authority of the area in which the property is placed; it can be a national government of country, a federated state, a county/region, or a municipality (In Slovak Republic property tax is the most important income for municipalities). We basically distinguish four general kinds of property: land, improvements to land (which are immobile man-made objects, such as buildings), personal property (transportable man-made objects), and intangible property. Combination of land and developments are called real estate or reality. Under a property tax system, the governing authority implements assessment of the financial value of every single property, and tax is measured in quantity to that value. Methods of property tax utilized differ significantly among different countries. Tax on property is often confused with special assessment tax. There are two basic forms of taxation which are the most popular: first (ad valorem tax) depends on the fair market value of the property. The second one other also called special assessment depends on a special enhancement also named a "benefit" for its reason. The property tax rate is frequently specified as a proportion. To compute the property tax, the local government uses multiplication of the evaluated value of the property by the mill rate and then divide by 1,000. For instance, a property with weighed value of 100,000EUR situated in a municipality with a mill rate of 20 mills would have a property tax bill of 2,000EUR per year. Property tax in Netherlands is imposed on homes on a municipal origin in two fragments: for the individual who lives in the household, and for the landlord of the house. Individuals who rent house are accountable only for the living part of the tax. Australia’s property...
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