Property Tax: Reduction And Understanding Your Tax Bill
There are some reasons why people receive a property tax reduction. Veterans, seniors, and low income homeowners can apply for a tax reduction or a tax deferral. Keep in mind that not everyone who applies receives the reduction or deferral. The state and community you reside in may vary from other states and communities. If you do not qualify, you can ask for installment payments on your property taxes. This is one way to avoid foreclosure and possible auction of your property.Property tax for a veteran who owns a property that is their residence can receive a discount, but they do have to meet certain guidelines. The veteran must have received an honorable discharge. The veteran must have some particle disability and be at least sixty-five or older. Residency requirements might also apply depending on your state. You can apply with your county’s tax registrar to find out if you qualify. Keep in mind that ever community has different guidelines that may be more laxed or stricter for reductions and discounts.
When you receive your property tax bill, you need to go over it very closely. You need to look at the fair market value and the assessed value. These two different things have two different meaning when figuring your property tax liability. Many people have complaints about how the assessment of homes or properties is done. The county assessor does not enter your home or property, they look at the outside for a description of the property to compare to other similar properties in the area to determine your assessed value. This is common practice and may not always be the true assessed value of your property.
At this time, you have no recourse to recoup any of that money. It is better to check the bill and decide if you feel comfortable about the new assessed value of your property.
The tax bill
The first thing to understand about your property tax bill is the terminology. Many people look at the tax bill and see a bunch of numbers that have no meaning to them. In reality, they do have a special meaning to the property owner. If you do not understand what the sections on your property tax bill mean, you might not know if this bill is correct or not. Here are some terms that you need to understand when looking at the tax bill.
For those who have a lottery, you will see a section where it states that you are receiving a lottery credit, which will lower your total property tax due. Everyone in the county receives a lottery credit and that is why the credits are usually very small in amounts. The lottery credit will affect your total tax due and not the tax base.