Last Updated 09 Apr 2020

Property Taxes

Category Tax
Words 515 (2 pages)

Property taxes – local taxes, immovable property/land tax, motor vehicle tax . (Lukas Szita) A property tax also known as millage tax is a charge on possessions that the holder is obligatory to pay. The tax is imposed by the governing authority of the area in which the property is placed; it can be a national government of country, a federated state, a county/region, or a municipality (In Slovak Republic property tax is the most important income for municipalities).

We basically distinguish four general kinds of property: land, improvements to land (which are immobile man-made objects, such as buildings), personal property (transportable man-made objects), and intangible property. Combination of land and developments are called real estate or reality. Under a property tax system, the governing authority implements assessment of the financial value of every single property, and tax is measured in quantity to that value. Methods of property tax utilized differ significantly among different countries.

Tax on property is often confused with special assessment tax. There are two basic forms of taxation which are the most popular: first (ad valorem tax) depends on the fair market value of the property. The second one other also called special assessment depends on a special enhancement also named a "benefit" for its reason. The property tax rate is frequently specified as a proportion. To compute the property tax, the local government uses multiplication of the evaluated value of the property by the mill rate and then divide by 1,000.

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For instance, a property with weighed value of 100,000EUR situated in a municipality with a mill rate of 20 mills would have a property tax bill of 2,000EUR per year. Property tax in Netherlands is imposed on homes on a municipal origin in two fragments: for the individual who lives in the household, and for the landlord of the house. Individuals who rent house are accountable only for the living part of the tax. Australia’s property taxes are known as property or parcel rates. Parcel rates and regularity of payment are set by local municipialities or councils.

Each council has employees who value the land's price. The land value is value of the just land; they do not include existing non-moveable buildings on property. The measured worth of the land is base for the total charges of rates. Those charges differs from $100 per quarter to 1$, and frequencies of payments are differs according locality. Water rates are also common charges for property owners in Australia. Australia furthermore has stamp duty, used at the time when a property is sold.

Fee is paid by the purchaser to the Office of State Revenue. Moreover to mentioned stamp duty there is also a Land Transfer Charge under the NSW State Revenue Legislation Amendment Bill 2010. Stamp duty rates are from 1% to 6. 75% based on the value of property and the state of Australia. Denmark has much simple system for taxing property. There it is 1% fee for property appreciated at less than DKK 3 million and 3% rate for above DKK 3 million. In Greece, property tax is set upon floor-area and bills for electricity.

Property Taxes essay

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