Before we begin, let's get one thing straight. The value of your home isn't fixed forever, which means the property tax you pay for a home you own cannot be fixed either.
Property tax is dependent upon two major things - your property's assessed value and your county's tax rate. This blog talks about the former.
Learn more about how a county's tax rate is determined here.
To put it simply, any property's value is its current economic worth. Property valuation is the process through which it is determined. A property buyer, seller or owner must always know what the subject property is worth.
Learn more about property valuation here.
A property's price may not be the same as its value. Value is the property's actual worth compared to similar properties; price indicates what a property might be sold for at a given point in time.
commodity, land's value generally appreciates. The rate at which appreciates depends on several factors that affect current market conditions. But as a major part of owned property, fluctuation in land value directly affects the assessed value of a property.
price per square foot. Certain improvements determine the usability of a property. These factors which influence the market value also determine the assessed value of property.
improved, the additional value is attached to the assessed value of property. Different counties treat this additional value of improvements differently, depending on the laws of the state, county or city. Get in touch with your local county appraisal district to learn more.
and tear. Economic depreciation often occurs with real property. Depreciation isn't uniform or scheduled. It depends on several influential factors. Depreciation directly affects any property's market value, thereby affecting the assessed value.
The assessed value is a percentage of fair market value or the price a willing and informed buyer is willing to pay for a property. Depending on several factors like demand, scarcity and more, an assessed value could change too.
on real estate data in the neighborhood and surrounding area. Property values of other comparable properties in the area affect the Computer Assisted Mass Appraisal (CAMA) system which standardized the valuation of property for taxation purposes.
have properties with a higher assessed value. Similarly, distressed areas have lower assessed values due to the poor quality of the neighborhood. Naturally, urbanization and increased settlements in an area result in better neighborhoods and in turn, higher assessed values.
among a plethora of other possibilities in a property's vicinity directly affects the quality of the neighborhood and results in a higher market value and therefore a higher assessed value.
assessed value of a property on the property used as the principal residence.
Learn all about the qualification criteria to be met by a property owner and the property to claim a homestead exemption here.
A property's assessed value only determines the valuation of property for taxation purposes and does not affect the price at which you can sell or buy property.
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