Property Tax Exemptions Basic Overview

What are Property Tax Exemptions? Basically, all real and personal property is subject to tax unless there are established specific exemptions. There are various types of exemptions. These include the use of the property (for example, property used for religious purposes or of charity) and the form of the ownership of the property (for example, household goods). State and local governments use exemptions to help attract new businesses and promote certain types of development, such as affordable, accessible housing for low-income persons or the recovery of historical sites.

Exemptions range from full to partial tax relief. One city may provide a total exemption for personal or business property, while another may offer only a partial exemption for these types of property. The limitations can be expressed in terms of monetary sums or a percentage of the value. The exemptions for homeowners are an example of this type of partial exemption. There are other following forms of exemptions:

  • Certain municipal levies
  • County city, town and school purposes
  • Government property (these are required by state law)
  • Persons over age 65
  • Veterans.

Property Tax Exemptions by location

An important issue related to property taxes law is on the location of the property (or the “situs”) for tax purposes. If a taxpayer has property in more than one area or if he has personal property, such as a vehicle or trailer, it may be difficult to establish the most appropriate location to determine the tax on such property. Since the laws can vary so much between one place and another, this question tends to be controversial.

The general rule states that land will be taxed in accordance with the laws of the county where it is located, regardless of where the owner resides. On the other hand, moveable property is generally taxable according to the laws of the county where the taxpayer is.

See also: Property taxes and 3 tips to reduce it

Watch video Understanding Property Tax Exemptions

Video discusses Homestead and other property tax exemptions available to property owners in Pinellas County.

Watch video Indiana Property Tax Exemptions

In this short video we’ll explain the different property tax exemptions available if you live in Indiana. If you just bought or refinance a home, check this out so you can take advantage of every possible discount! Download pdf Indiana tax property benefits.