Property tax can be the fairest and at the same time the least fair tax collected by municipalities.
A person's place of residence and economic situation are two of the determining factors in how it can affect the amount that an individual will pay for this type of tax.
While we can all appreciate the benefits of owning a home compared to renting, when it comes to property tax, renting is by far the best option. States will collect property tax on the following:
Any additions to the property such as land improvements
All structures that are not permanent to the property
The assessment is usually done by an exclusive county tax collector in each state. The property and land of an individual will be assessed according to its value and subsequently posted in the form of a notice of payment of taxes. This amount is generally paid through the amount of the owner's escrow indicated on his mortgage.
Many times this can negatively affect a property or landowner, as taxes in a specific state can sometimes double or triple and leave the owner unable to pay his taxes, which forces him to sell his property or land .
Fixed income people like retired seniors can be strongly affected by the increase in property tax. The value of their housing is increasing, but at the same time, they find themselves unable to pay their taxes due to their reduced income. Unfortunately, property tax does not allow much leeway in the event of acts of nature or personal tragedy.
Although 2.3 appears to be the average percentage for property tax, it varies widely from state to state, which makes it very unfair to some states like New Hampshire, as it represents a high rate of 4.9%.
It also seems unfair that states like Alabama pay 1.3% and yet a short distance from neighboring Georgia, they should pay 2.6%, then even more in Florida at a rate of 3.1%. .
So who determines how the money generated from this income is spent or, in some cases, wasted? State legislatures will determine this as well as the decision to increase or decrease the property tax and the frequency with which it is collected.
Even though property tax can absolutely help states with income, the amount of property tax payable can be a determining factor in the decision to reside to realize the American dream of land or real estate.