The housing market is a booming industry all around the globe. As such, it's not surprising that many people want to know about property taxes before they purchase a home.

What Is Property Tax?

Property tax is a tax that is paid on real estate and other kinds of property you may own. This type of tax is dependent on the value of the assessed property based on various factors such as its location. If you are seeking more legal advice concerning property tax, you can consult with a property tax attorney to get more information.

According to the Urban Institute, the combined average sum of property tax collected annually collected from both state and local governments stands at $547 billion. Property tax is usually evaluated and collected by state governments and local governments annually. They vary depending on the state and even counties. Talking to your property tax attorney will help you to clarify the rules and regulations set.

Property tax is calculated by multiplying the value of your evaluated property with a basic levy rate. A basic levy rate is a percentage regulated by a municipal tax authority in an area locale. Sometimes, special evaluation can be included in the sum of the property tax evaluated. Property taxes fall under local tax that fund local county government programs that help to pay for services that benefit local communities.

Property Tax vs. Real Estate Tax

Although they are used interchangeably, property tax and real estate tax are not the same. A real estate tax is an example of property tax. Real estate taxes get evaluated based on real property, such as your home or tangible property you may own like cars.

A property tax bill is usually paid yearly to the tax evaluator or it could be split into monthly payments and get paid with your mortgage. Your mortgage lender then sends the property tax billed in your mortgage to your tax evaluator. If you want a more detailed and legal review of your property tax, you can seek the services of a property tax attorney.

The evaluated value of your property should not be confused with the price you purchased your home for. Your local government's tax or property tax evaluator will give you the evaluated value of your property. This value is usually lower than the market worth of your property. This works to your advantage because your property tax will be calculated using that lower value.

The process of finding out the evaluated value of your property is typically easy. The value could be stated on a recent property tax bill or you can do a quick search on the internet for the website of your property tax collector or evaluator to find the value of your property.