Real Estate Tax - Tax Maps, Real Estate Tax Exemptions, Estate Tax Lien Information and More
The history of assets tax and property tax can be traced back to Colonial America. Land was taxed on a per-acre basis until the nineteenth century when uniformity clauses were adopted to help shield settlers. The uniformity clauses now require that property be taxed in step with its value.
Illinois was the primary state to adopt this clause, and some states such as Tennessee adopted additional provisions that exempted merchandise produced from the soil and up to 1 thousand greenbacks of personal property. Elected officers would assess the market value of the property, collect taxes due, and flip the money over to the proper government (school districts, special districts for fireplace prevention, irrigation, etc.).
It wasn't until 1907 that the National Tax Association was founded, and declared that trained professionals perform all assessments of realty for tax purposes. This regulation curtailed favoritism and promoted equality.
PROPERTY ASSESSOR AND REAL ESTATE TAX MAPS
Within the twenty-1st century, state governments rely a lot of on income and sales taxes than on property taxes for funding. Local governments still depend on a tiny percentage of property taxes to come up with revenue. The tax assessment is based on the price of the building and the price of the land it occupies. The assessor maintains accurate "tax maps" which identify individual properties to ensure they are not taxed additional than once.
Any improvements created to the structure or land will be noted on these maps. Methods used to calculate price of property have modified since colonial times. Assessors might currently opt for between the income approach, market price, or replacement cost. All values determined by the assessor are subject to a "second opinion" via administrative or judicial review. Once the price of the property is set, the assessor can multiply this worth by the established tax rate to calculate how a lot of you owe in taxes.
HOMESTEAD REAL ESTATE TAX EXEMPTION
Some states have passed laws to produce homestead exemptions to put limitations on how high property taxes might be raised. This exemption is only out there to residents of those states in which the property in query is the primary residence. You can not use a rental property or second home in a totally different state as your "primary residence" to receive this tax break. Once the property is sold, the exemption is removed and property taxes may rise for the new owner based mostly on the acquisition value of the home.
DELINQUENT REAL ESTATE TAX PENALTIES (APRIL 1ST)
Failure to pay your taxes by April 1st every year can lead to a delinquent real estate tax. Penalties for delinquent taxes may vary by state. In some states you will be charged a ten p.c penalty on all unpaid taxes and can be charged an extra administrative processing fee.
If when the beginning of June you still haven't paid your delinquent land taxes, your property can become tax defaulted. At this point you will begin to accrue extra penalties for every month that your taxes stay unpaid. If you continue to refuse paying delinquent taxes, the Tax Collector could appeal to the Court to seize and sell your property.
LIEN ON PROPERTY AND TAX CERTIFICATES
A lien could be placed on the house through the purchase of a tax certificate, and therefore the owner can only remove the lien by paying the desired taxes due. After a period of 2 years, the holder of the tax certificate could request a tax deed application. This application permits the certificate holder to sell your property at a public auction. The only method to stop losing your property is to pay all delinquent taxes and applicable fees that have accumulated.
ESTATE TAX LIEN AND AFFIDAVIT TO REMOVE TAX
Some states such as Massachusetts will place an estate tax lien on property when the death of the owner, or anyone else who could have had a legal interest within the property (i.e. spouse). This sometimes happens in the absence of probate and when the gross estate price does not exceed $1.five million. Estates value a lot of than this limit will be subjected to federal estate tax filing.
Barring the higher than exceptions, an estate tax lien might be removed by filing an Affidavit. The Affidavit may be filed by an Executor or anyone in possession of the deceased's property (i.e. spouse). An Affidavit should contain key info such as:
1. Full name and date of death for the deceased
2. Documentation that the estate will not require federal estate state filing
3. The identity and title of the person signing the Affidavit and the form must be notarized
4. The death certificate
5. Any applicable recording fees for the Affidavit and death certificate
Author Resource:
aaron adish has been writing articles online for nearly 2 years now. Not only does this author specialize in Finance, you can also check out latest website about
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