In the United States, although different states might apply different property tax rates, the amount owners owe in property tax is decided by a similar system of U.S. law.
Basically, property tax is determined by multiplying the property tax rate by the current market value of the lands in question. Most taxing authorities will recalculate the tax rate annually. Almost all property taxes are levied on real property, which is legally defined and classified by the state apparatus. These real properties usually include the land, structures, or other fixed buildings.
Property owners are subject to the rates determined by the municipal government. A municipality will hire a tax assessor who assesses the local property, and the assessor will assign property taxes to owners based on current fair market values. Sometimes the assessor might be an elected official. Finally, this value will become the assessed value for the home.
The payment schedule of property taxes also varies by locality. Almost all local property tax codes provide the exact schedule that explains when the owner can discuss their tax rate with the assessor or formally contest the rate. If you do not pay your property taxes, the taxing authority may assign a lien against the property, and the buyers should always complete a full review of outstanding liens before purchasing any property.
Sometimes the property tax also includes the real estate tax. Many of us might have head of real estate tax. The difference between the real estate tax and the property tax is that property tax can include both real property and tangible personal property, while the real estate taxes are taxes on real property only. Tangible personal property might include personal belongings such as cars and boats. Thus, when calculating property taxes, local municipality will also calculate tangible personal property.