Common Property Tax Relief Questions
A. It’s the law! Everyone pays property taxes. It contributes to government funding and is necessary to keep the nation operating in such a way that keeps the United States citizens living comfortably. According to National Priorities, the federal tax revenue for 2015 was estimated at $3.18 trillion. This not only comes from property taxes, but individual, payroll, corporate income taxes, excise taxes and custom duties.
Q. Is there a discount for first-time homeowners?
A. First-time homeowners still have to pay property taxes. They are expected to pay the same amount as any other homeowner. However, when its time to file annual taxes, the homeowner may be eligible for a tax credit or tax deduction.
Tax credits and tax deductions are two different things, although they both have the same end result: reducing a taxpayer’s income liability. While the tax deduction reduces your taxable income, it only takes it down to a certain amount based on where you are in the tax bracket. The tax credit reduces your taxable income directly, having the same value as other taxpayers, meeting it dollar for dollar. So the tax credit would be the better option.
Q. How is my property tax calculated?
A. Your property taxes are determined by the use of the mill levy system. The mill levy is the assessed tax rate that is determined by different councils, boards, and legislatures to calculate how much money is needed to fund the city where your property stands. Taxes pay for city services that might otherwise get neglected like maintaining streetlights, funding the fire and police department and schools, libraries, parks and other government funded organizations.
TIP: For more information about a mill levy contact the experts at Success Tax Relief Service.
Q. Where do I go to pay my property taxes?
A. Depending on the state and city in which you live—and even your neighborhood, the amount of taxes owed will vary. When it comes to paying your taxes, people who finance their home usually set up an escrow account through their bank that sets aside a certain amount of money to go toward your property taxes. The projected amount of property taxes is determined by the previous year’s value. That amount is then added to your monthly mortgage note. If the amount projected was more than the actual property taxes paid, the bank will issue you a refund.
For homeowners who buy their property without financing, there are other ways to pay your property taxes. If this applies to you, or you choose not to increase your mortgage note, check your local county office to learn about these payment options.
Success Tax Relief: Helping You Manage Your Property Taxes
Being a homeowner is a big responsibility, and managing how to deal with property taxes tends to be at the bottom of most people’s priority list—although it shouldn’t be. Success Tax Relief can help you find the best solution for paying your property taxes. So call us today at 877-825-1179 or ask us a question online right now!