Tax Financials

Nobody likes paying taxes. Well, I shouldn’t state that… as I am sure there is some sick individual out there that loves to pay their taxes. Some people, just have problems. For the rest of us in the world, it is important that we pay them, and pay them on time. Property tax payment schedules vary, unlike income tax returns. It is important to find out when taxes are due in your town, at your local town office. Luckily the town knows you do not enjoy paying your taxes, and will make sure you know when and how much you should pay by mail.

Many towns have their schedules posted online for you to see. Just like income taxes if you do not pay on time there will be penalties. If you state that you will be late and ask for an extension, this may void added penalties. Contact your local town office for details on the matter, it is their job to aid you. Your property tax due date does matter!

Nobles, A. (2010, February 28). Property Tax Due Date. Retrieved Month #, Year, from http://www.tax-financials.com/property-tax-due-date

Pay your property taxes? Then you should receive a property tax statement. When you make a payment towards what you owe for your property taxes, you will receive a receipt. This receipt will tell you how much you paid, and your property tax statement will tell you how much you still currently owe.

If you have misplaced, or never got, a property tax statement you should request one. Your local town office should be able to handle the request the day you ask for it. Requesting a property tax statement is as simple as walking into your town office with your id, and requesting a statement. Depending on your town, you may or may not be charged a small fee. Typically though, they like you having this information, and will not scare you away with a fee. Without a statement, it makes it hard to pay your property tax bills and file your state income taxes.

Property taxes are based on your property tax assessment, and are typically due quarterly. Towns will often let you pay your property tax in payments, and will not charge you extra fees unless you are late on a payment. This is why it is of the utmost importance to have a current statement at all times, and to get a receipt after every payment. You need your statement for tax purposes, and will likely have to send in a copy to the IRS each year if you do not want to pay taxes twice. You already paid them to the town, so it gets subtracted from your taxable income, for federal returns.

APA:
Nobles, A. (2010, February 28). Property Tax Statement. Retrieved Month #, Year, from http://www.tax-financials.com/property-tax-statement

Thinking of buying a new home? The fun part of the whole process is going to look at houses, the not so fun part… trying to assess the value of a home. Sure the Realtor who listed the property already figured the “sell price,” but what is it really worth? Some districts charge incredibly high property taxes, while others charge relatively little. You also need to assess what you are getting for the taxes paid. How is the police force? How is the local school system? Does the town keep great care of the roads? These questions need to be looked at to determine how much “waste” is in the prospective home’s town.

Sometimes neighboring towns can differ by as much as 3% points; what are you getting in return? Towns which have heavy commercial districts, have a lake, or has ocean access typically have lower property tax rates. Why is this? The value of the properties on a lake, for instance, are valued much higher than a property in the middle of nowhere, meaning the town can charge an incredibly lower fee. Depending on waste, fire departments cost the same for two towns that have 1,000 residents over the same amount of acreage. A town that has hire valued homes will have to charge a lower amount to its citizens to get the same service as a town that has much lowered valued properties.

Generally the last years property tax bill will be listed in the property prospectus that the Realtor will give you when looking at a property. It is never a bad idea to “double check” this figure by going to the town hall yourself. You can actually find out what anybody pays on their property taxes just buy asking for a record. The noisy neighbors will always know how much your homes value is, just by doing a little reverse math, and figuring out the value based on how much you paid on property taxes. Yes, some people are that tricky. This is something Realtors have been doing for ages, when there are few recently sold properties comparable to a specific property in the area.

Need a citation?
APA:
Nobles, A. (2010, February 28). Property Tax Look-up. Retrieved Month #, Year, from http://www.tax-financials.com/property-tax-look-up

When you make a payment towards what you owe for your property taxes, you will receive a receipt. This receipt will tell you how much you paid, and your property tax statement will tell you how much you still currently owe. Some towns send out yearly receipts for you to use for tax purposes, as you can “deduct” these property taxes while filing your income tax returns. When filing your income taxes you will need your property tax receipt(s) handy. It is important to save all of these documents when they are received, and put them aside in a special place. I personally keep a folder each tax year, and throw everything I receive in there.

If you made the mistake of throwing out your property tax receipt, or just misplaced it… you are able to get a new one. The easiest, and fastest way, would be to head down to your local town office and they will print you out one. Whether or not you have to fill out a form and have them “process” it for you, or if they can do it right away does not matter. Town offices will get you documents you request in under a week, in almost all cases… unless otherwise noted. Some town offices will require a fee to print this out, and if you live in a bigger town where people do not know you, you must bring an I.D.

Property taxes typically go to very localized activity, like local school districts and roads. A percentage of your property taxes go to your state, the rest goes to your town. It is very easy to figure out how much tax your town adds own to your property tax, and all you have to do is ask your local town clerk. Property taxes are a percentage of your property’s “assessed value.” Typically your town will send somebody around to your property every few years to see if anything has changed. They do not do this every year as they just change your value based on current market factors in most years. Typically they will leave you alone, unless you have gotten a building permit or changed anything during the tax year.

Need a citation?
APA:
Nobles, A. (2010, February 28). Property Tax Receipts. Retrieved Month #, Year, from http://www.tax-financials.com/property-tax-receipts