Personal Property Taxes and Real Estate Taxes-The Peculiarity Between the Two Tax Classes
Property held by any person can only but belong to two main categories, and these are the Real Property and the Personal Property. Typically, real property is constituted of a number of features such as land and the constituent attachments that may be on the land such as buildings, farmhouses, ranches and any other kind of fixtures that may be attached to the buildings therein.
Property outside of the real property category such as livestock, cash, furniture and cars will generally fall under the personal property category. Below is a look at the features of the tax principles applicable to the two alternate classes of taxes.
By and large, real estate taxes are assessed on the industrial property and the residential property as well. What will be the determining factor of the tax calculations will be the fair market value of the property so concerned. This thus points to the fact that you as a property owner needs to be as interested as much as is possible in the valuation of the property as we can see this to be such a crucial element in the tax calculation at the end of the day. There is basically a straight kind of relationship between your taxes due and the value of the property as is determined by the property valuation experts, where you will realize that the higher the valuation of the property the higher the tax that you will be deemed due to pay and the lower the value of the property the lower your tax due to the authorities. If you are an owner of real estate property, you need to know that you will be bound to pay real estate tax unless you are exempted by law through disability or by reason of age. It is as well important for you to mind the fact that as a leaseholder leasing property from a property owner who is exempted from paying the real estate property taxes, as a leaseholder you will be due for the pay of taxes anyway. The value of real estate property is done on an annual basis by the assessors’ department and such values will be mailed to the taxpayer at the start of every year.
For personal property, the taxes due will be assessed just on those items that are employed in business. As a taxpayer, you will be required to file an assessment that is in line with your personal property. The assessor will then assess the values and after then get you the taxpayer a statement form and after then you will be required to report the value of your property as is required by law.