July 23, 2024

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The Difference Between Real Estate Tax And Personal Property

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Property is mainly divided into two classes

1. Real Property

2. Personal property

When we talk about real estate we talk about land and anything attached to land permanently. Buildings, farmhouses, ranches, fixtures constructively attached to a building are some of the examples of real property.

Personal property is any property except real property. It includes livestock, furniture, automobiles, and money.

Real estate taxes and personal property taxes:

Real estate taxes are assessed on industrial property or residential property. The taxes are based on the fair market value of the property. Taking interest in the valuation of it is important. There is a direct relation between the value of the property and taxes. The higher the value of the property, the higher will be the taxes.

Owners of real estate have to pay property tax unless exempted by state law due to age or disability. If a leaseholder is leasing real estate from an owner whose property is exempt, the leaseholder is liable to pay taxes. Residential owners, agricultural property owners pay their taxes directly, whereas renters pay indirectly through their rent. Real estate value is assessed yearly by the assessor’s department, and each year in January the assessment notice is mailed to the taxpayer. The notice of assessment is mailed to the business owner also in January each year.

Personal property taxes are assessed only on property that is used in business. The tax payer is liable to file a statement for assessments related to personal property. The assessor has the right to asses the amount of personal property as reasonable and if a statement is not furnished. The local assessor provides a statement form to the business owner as he is required to report the value of the property according to the law.