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Real Property Tax


Submitted By dendenguballa
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Real Property Tax
A property tax on local real estate that is calculated according to the fair market value of the real estate. That is, a real property taxis assessed as a percentage of the amount for which the owner would be able to sell the property in the current market. As a result,real property taxes increase when the local property market is bullish and decline when it is bearish.

Real property tax.
A real property tax is a local tax on the value of real estate. The property may be assessed at full value, which is presumably the price thatthe owner could sell it for in the current market, or using some other valuation method.
The taxing agency, such as a county, city, town, or village, sets a tax rate, which is multiplied by the assessed value of each property todetermine the tax due on that property.
You may be able to deduct real property taxes on your federal income tax return, but large deductions for real estate taxes are one of thefactors that may result in your owing the alternative minimum tax (AMT).
Real property tax is a tax based on the value of the property. Real property taxes are governed by state laws, which vary by state. Appraisals which are the basis for property values can generally be appealed according to local rules.
Some of the reasons for appealing a tax assessment include: 1. The assessor's market value estimate is higher than the actual market value. (This claim can be easily supported if you have recently purchased your property.) 2. The primary assessment of the property is based on inaccurate information such as an incorrect measurement of a lot or building. 3. The assessment is higher than those of similar neighboring properties. 4. The assessed value is at a higher percentage of market value for your property than the prevailing township, or county median level, as shown in an assessment/sales ratio

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