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County Property Taxes – Their 6 Uses

County property taxes are often the highest among the taxes and that we surely dislike paying. This bill gives you good shock at times. This is because these taxes are indeed soaring high these days. However, they greatly vary as per the area you reside in and the state you live in.

I’m sure you wonder as to what is the need of this tax? Why do we pay it? Where is this money utilized?

Well, you would be glad to realize that a major portion of these taxes are stay right with in our local communities especially for our benefit. This money is diversified in fields like education, police & firefighting facilities, etc.

While some local city & county property taxes are given to the state, in almost all areas at least 90% property taxes paid by us remain local benefiting our community at large. Even in the state revenues, they just form a meager portion.

Given below are the most common uses of the county property taxes.

1. Schools

In a majority of areas across the nation, more than half of each Dollar paid as the County Property Tax is used to fund the local school district. In fact, this is the most important source of income for the local school districts in a number of states. These schools use the tax money to purchase books, to pay the salary of the staff & the teachers, for the maintenance of the school buildings & buses, etc.

2. Roads

The money paid as County Property tax is extensively used for the maintenance of roads. All sorts of minor repairs and other requisites like widening of the roads are taken care of in order to maintain the good working order.

3. Police and Fire Support

The city & county property taxes are also used as funds to pay the salaries of our sheriff. Also, in most cases, our local police officers and firefighters use this money to support the necessary infrastructure required for these services like the buildings and vehicles.

4. Public Libraries

It is a less known fact that libraries most oft are maintained by the county. Hence, the county property taxes are used primary funds for the building maintenance & staff salaries. Then of course, it is this money paid by the tax payers that is used to purchase new books for the library.

5. Hospitals

At times Government operated hospitals have to be closed due to losses. But it is always in the interest of the community to have a hospital close by in the vicinity itself. So the tax payers have to bare a certain amount for this facility. Some part of the county property tax that we pay goes to the hospitals that run in to losses in order to keep them afloat.

6. County Government

And, among the essential uses, county property tax funds the local county government. They use this money for the upkeep of the office space and to pay administrative salaries.

Now, the next time you use the community services, remember that it’s your money being used. It’s your civic duty to watch how each Dollar is being spent. Check the unnecessary spending. And, always remember that county property tax is the only tax that benefits you most individually.

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Non-Payment of Property Taxes – Consequences to be faced

The property taxes are the largest bills that are received every year. Property taxes are paid in order to fund the local government for necessary programs such as schools, and for maintaining roads in the locality in which we live in. What if the bills are too high and one cannot afford to pay the tax this year?

First thing to be done is to look into the assessor of taxes’ valuation of the home. Whatever is determined by the assessor of taxes will have to be paid as property tax. However if you think that your home has been valued more than the required amount, you can make an appeal to reconsider the valuation. If the appeal is in your favor then you will need to pay only the lower and newer valuation for your home. This will bring down your tax bills greatly.

Next, see to that if there are exemptions you are not taking. In many places, there is a homestead exemption that can be taken on your primary home. This will definitely reduce your bills. However if you own more that one property, then you will be able to take the homestead exemption only on you main residence. This homestead exemption can be taken at the local tax office if they are permitted. There is also a hardship exemption but it is offered on a yearly basis.

Also you need to request for a plan of payment for all you properties. Most of the local offices will give you the plan of payment that allows you to pay the taxes over a period of time. In some places, you can pay the taxes in installments until you have completely paid the taxes without needing to make a request for a plan of payment. This can be done to prevent tax foreclosure of your property. Once your property is tax foreclosed then it is not possible for a plan payment to be set up.

If the property taxes are not paid on the due dates it will lead to accrue penalties and interest will start to build up on the unpaid balances even though you have a payment plan. If the taxes are not paid a long period even after the extended time then your property will be tax foreclosed. Different states handle these foreclosures differently. However in all states there is particular point at which the property is seized. Then they sell it off to the local government to in order to pay the delinquent tax. Mostly the government will work with these tax payers to ensure that the properties are not seized.

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Appealing for lowering your property taxes: the smart guy?s guide

Ever since the State stopped assuming that your only house is your primary residence, property tax bills shot up for everyone. Yes, if you have not declared the fact that your only residence is your primary residence ready yourself to cough up more in property taxes. The simple solution is to send in the Homestead Tax Credit Application or file an appeal.

This is turning up to be a new wave for tax assessors across the country to tackle. The figures are a deep matter of concern for the State itself. In other states in the country for example, The Wall Street Journal reported that in St. Tammany Parish, La., 15,000 residents — instead of the usual 500 — requested a review of their 2008 tax bills. Similarly the Cleveland Plain Dealer reported that Cuyahoga County, which sees approximately 1,300 foreclosures a month, faced three times as many appeals in 2007 compared with previous tax cycles.

On the other hand, while prices of residential properties dipped to 27% from the 2006 peak to the end of 2008, according to the S&P/Case-Shiller Index, while the amount municipalities collected in property taxes climbed to 12% from 2006 to 2008. These figures are a clear indication why more and more people are opting for re-assessment of their property taxes.

Of late, due to the dip in sales prices, the assessments on houses are higher for the sales price than they used to be earlier. The point here is that you possess the right to contest that your property needs to be re-assessed so that you eventually end up paying lesser taxes. For people who haven’t bought a property recently but have been staying in the same property since sometime now, the taxes soared with the incline of property rates too.

Your options:

Property owners can file through the Homestead Application requesting lowered property taxes. Appealing is a bit more complex process when compared to filing a homestead application. A board or panel needs to be convinced about your plight in a very convincing manner. Considering the fact that these boards see a hundred such cases a day make sure you sound genuine and fact-equipped while appealing before them. It is a good thought to survey a few properties around your own and review the sales figures. Bear in mind that these houses might be located differently, may have a different number of rooms and might have been recently renovated before assessing your own house in context to them. 

Smart Steps

Gather information on who will be hearing your appeal. You can appeal your assessment any year. Even if you have already paid the taxes, do not worry they will refund it if your appeal goes through. Most municipalities allow a personal hearing. Make it a point to be there on time and draw some factual information about the properties around your own. If you are required to hire a tax attorney, try negotiating with the attorney for a lump sum fee rather than per hearing based structure. Many attorneys demand for a portion of your first years’ tax savings. This we know is a good proposition since it will start paying up the second year itself due to the lowered property tax bills.

The State reviews hundreds or probably thousands of such applications on a regular basis and you need to hit bulls-eye when your case comes up. Seek advice from neighbors or friends in your area who have beaten the same path for small tips to improve your proposition. Once done, happy tax savings are just at arms length.

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