There are a lot of different taxes that impose all over the globe. A tax imposed towards the owners of certain property within their jurisdiction by the municipalities is known as Property Tax. Property tax or mileage tax in certain countries around the globe are normally according to the property’s value. The tax is one type of ad valorem in which an owner of a property is needed to pay a certain tax value based on the value of the property.
Properties are group under three different categories: Land, Personal, and improvement to land. Land defines the land itself. Personal is defined as movable human-made objects on the land. This makes the immovable human-made objects such as buildings under the category of improvement to land. Real property, realty, or real estate is the terms that are commonly used for the combination of improvements and land. To excise the tax, the authority will perform and require an appraisal on the property’s monetary value, which the property tax is based on. In certain cases, a third party is assigned to perform the appraisal. The use of this property tax is different among the countries and its jurisdiction depending on each country’s policies.
This type of tax is often mistaken as the special assessment tax, but both forms of tax are distinct from each other. As property tax depends upon the property’s valuation based on the fair market value for justification, the special assessment tax relies upon special enhancement, also known as “benefit,” for justification.
The rate for this tax is frequently given in percentage or also being expresses as mileage rate. Mileage rate is per thousand of currency units that are taxed, referring to the property’s value. To calculate property tax for a property with a certain value, the property’s value will be multiplied with the assessed rate for the property with the mileage rate, followed by dividing the value by 1,000. Let’s take an example, a property with an assessed price of $40,000 located within a municipality with a mileage rate of 25; the property itself would have a yearly property tax of $1000.
