Categories: Real Estate Laws

Property Taxes Payment Explained

Ownership of a home and property taxes payment. The two concepts complement each other. Provided that there have been property rights, there has been a governmental entity charging property taxes. Property taxes vary widely from jurisdiction to jurisdiction, you pay more in the city of New York than in Oklahoma, and more for oceanfront properties in the interior. Those purchasing a home should carefully consider property taxes as an ongoing additional expenses of the ownership of a property.

Deadlines for Property Taxes Payment

What is the deadline for property taxes payment? The expiration date of the property tax depends on the location. The terms vary widely. Some property taxes are paid annually, others pay in two, three or four installments. Some jurisdictions allow for tax payments on a monthly basis. The collection office nearest to the owner of a property will have more information about payment options. Some of them are the following:

  • Credit card payments
  • Discounts for early payment
  • Security deposit Agreements
  • Extensions
  • Partial payments
  • Staged payments

In some areas, homeowners pay their property taxes through accounts of security deposit. The tax bill is added to the mortgage payment. Therefore, the holder of a mortgage pays the tax with these funds combined.

Assessment of Property Taxes

The tax assessor of each jurisdiction determines the way in which the property taxes are assessed. Assessors calculate the value of the property to determine the tax. The “value” can be defined as: actual, appraisal and market value, among others.

Most states focus on “market value”. Market value is the amount of money that a knowledgeable buyer would pay for a certain parcel of property. To calculate the market value of a parcel of property, an assessor determines if changes have occurred in the market of real estate in which the property is situated.

Taxing Authorities

The responsibility for collection of property taxes payment exclusively belongs to the tax authorities of the local government. A taxing authority, such as a county, a city, a village, a hospital, a refuse collection, or school or other are legal officially elected or appointed to serve in an assigned geographic area government entities.

Both local government agencies and the state government are authorized to levy taxes, but the way in which they carry out the assessment, collection and compliance varies widely. In some states, a single state agency has the primary responsibility to make all assessments and collect the taxes.

Watch video Property Taxes Payment

Video, courtesy of Travis County TV, describing how to pay property taxes and why.

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