Property taxes are sneaky. You get the notice of what you owe and you probably don’t think too much about it after that, especially if your mortgage company takes care of paying them for you. But what are property taxes, what are they used for, and how do you know if yours are too high?
How Much Are You Paying?
Like other taxes, property taxes are something you should pay close attention to. We all know that even people who work for the government make mistakes. When you do take a good look at that bill, you might wonder if you are paying too much and how yours compare to others in your city, county, and state (and even across the country). It is a fair question, and a good way to begin to learn why you owe what you do.
Once you do a little research, you may decide that you are paying too much. There are ways to protest your taxes, either on your own or by using a property attorney Austin TX.
What Are Property Taxes Used For?
There are some positives about property taxes. They actually do some good things, as a major source of funds for cities and counties. They can go towards things like the building and upkeep of police and fire stations, paying emergency personnel, road maintenance, and the building of parks and other community recreation areas. They are also used in schools, for teacher salaries and facilities (although taxes used for schools are often under debate, as people without children may wonder why they have to pay for schools).
How Does the Government Decide How Much I Owe?
Basically, the amount you owe in property tax is based on how much your property is worth and where the property is. An assessor determines how much your property is worth by looking at things like the square footage of your home, how many rooms you have, and the acreage. They will also compare your home with those nearby.
Another factor of your property taxes is a mill levy, which is the tax assessment rate for real estate in your area. This number can vary depending on the public services in your town. A town with lots of parks, schools, and police will have a higher mill levy than a town with fewer amenities.
This is just a brief look at a complex issue. The more you understand about your property tax bill the better.
