Let's first define property tax so that we can discuss exemptions from it in a correct manner. A levy on property that the owner is required to pay is known as a property tax. The municipal or state taxing body uses a millage to charge taxes on all properties under its jurisdiction. 

The City Council, County Commission, and School Board recommend the millage tax, which is then put to a vote by the city's citizens. The county tax commissioner receives the authorized rate and uses it to calculate the taxable value of your property to calculate the semi-annual payments you owe, with the exception of properties owned by governments or religious organizations (YOUR CHURCH).

One “mill” represents one dollar of tax on every thousand dollars of taxable property.

 

So, whats the exemptions about?

Whereas each state has its own interpretation and rules of property tax exemptions, the more commonly used exemption is the Homestead exemption. Low- and middle-income taxpayers get a bit of a break. Certain tax ruling allows homeowners to remove a percentage of the value of the property from taxation which lowers the tax liability. This is called Homestead Exemption which shelters some home value from taxes.

So who determines the value of my property?

Here is where we get into the “Tomatoes vs Tomatos” game. There are two property value amounts to consider when determining your property value. Your local government (city or county) tax appraiser’s office will provide an assessed value of your home to properly calculate the tax. The local governments officials are suppose to come and appraise your home’s value.

The other value to consider is your homes market value. This amount is how much your home is worth currently on the market. Most homeowners will notice that the appraised value is often different than the market value. The market value is often determined by your local real estate agents as being what your home will sell for and is typically the price used for listing the property. For example, check out what realtors believe your home is worth on zillow.com

If you have any questions, please do not hesitate to reach out to a member of the LB&T team.