Property tax, or Milledge tax is ad valorem tax that an owner must pay the property value is taxed. Property tax can be defined as “generally, the tax levied by municipalities on the owners of real property within their jurisdiction on the basis of the value of such property.” There are three species or types of property: land, reclamation of land (real estate artificially, ie, buildings) and personal (movable objects artificial). Real estate, real estate or real estate are all conditions for the combination of land and improvements. The tax authority requires and / or evaluates the monetary value of the property and tax in proportion to its value. Forms of property tax records, used in different countries and jurisdictions.
Special taxes can often be confused with the property tax. These are two different forms of taxation: 1 (ad valorem taxes) are based on market value of property is taxed for justification, and the other (special assessment) relies on a special building called a “benefit” for its justification.
The rate of property tax is often given as a percentage. It can also be expressed as permille (the amount of tax per thousand currency units of property value), which is also known as the coefficient Milledge or mill tax. (Mills as one thousandth of the monetary unit.) To calculate the property tax, the authorities will multiply the estimated value of the assets of the mill speed, and then divide by 1000. For example, a property with estimated value of 50,000 dollars is a municipality with a mill rate of 20 mills would be through the property tax to $ 1000 year.In more familiar terms, dividing by 10 mills (move the decimal point to the left of 1) leads to an interest rate - 20 mills = 2,0%. Symbolically, that 20 ‰ = 2% - cancel ‘0 ‘.
Countries
Australia
In Australia, there is a real estate tax, known as property or land rates. Land prices and the frequency of payment is determined by local councils. Each council has land appraisers, who valued the land is worth. Should the land is land value only, but does not include existing dwellings on the property. Estimated cost of the land determines the overall cost rates. Prices may vary from $ 100 per quarter to $ 1000 per quarter, depending on the location and value of the land. Quarterly payments are common, but the frequency varies depending on the terrain. Australian property owners and pay for water. Some tips include this in total number of notification and provide data on water and land payments. Other councils can charge this separately. Depending on the municipality, water charges can be either a fixed fee, you pay or a combination of both. Potential buyers can get information about land and water rates from the local council before buying.
Canada
In many provinces in Canada levy property tax on real estate based on the current use and value of the land, and this is the main source of income for most municipalities in Canada. Although the level of property tax vary between municipalities in the province, there are usually common property evaluation and assessment criteria outlined in provincial legislation. There is a tendency to use standard market value for assessment purposes, in most provinces with different revaluation cycles. The number of provinces have established an annual reassessment cycle where market activity warrants while others are longer periods between assessment periods. Calculation of individual property tax
In Ontario, for the majority of properties (eg, residential, farms), property taxes can be calculated by multiplying the phased evaluation pointed to the property assessment notice of tax rates.
Municipal tax rate x phased evaluation of particular tax year = municipal tax portion of county / regional tax rate x phased evaluation of particular tax year = District / regional part of the Tax Rate for Education x phased evaluation of features of the taxation year of the tax = Education
part of the municipal tax district + / regional part of the education tax + tax = Total property tax
In some cases (eg, commercial, industrial, multiple residential properties), the province or municipality may adopt measures that affect the actual property taxes. For more information, please contact your tax bill for real estate or contact your local municipality.
Chile
Land tax is called a “territorial tax” or “contributions” are paid annually in 4 payments during the year. The rate ranges from 1 to 2% of the financial cost, depending on the use of property (agriculture, housing, commercial). Financial value is determined for each property by the IRS, based on land area and built the field, the cost of construction materials, age, use and distance to commercial premises. Financial costs are usually much lower than market value. A non-profit properties below a certain critical value of financial exempt (currently about $ $ 33K). Properties used for business does not have exemption.The collected taxes go to the municipality where the property is located. Hong Kong
In Hong Kong there is a kind of tax is called the property tax, but it is not ad valorem tax, it is actually classified as an income tax.
According to the Hong Kong tax IRO s5B all property owners are not subject to this tax if the property owner received the consideration of HK example rental income for the year evaluation. Property tax is calculated on taxable net asset value at the standard rate.
Year Assessment
The evaluation period is from 1 April to 31 March next year.
Net taxable
The formula is as follows:
HK property tax payable = Net valuation X property tax standard rate
Tax value = Rental income + Premium + (Rental bad debts recovered - repayable loan) - Prices paid by the owner.
Jamaica
This tax is paid as the mortgage, the annual payment, depending on the price of 1 assets such as property.
India
The house property tax and the tax is a local tax on buildings, together with adjacent land, and imposed on property owners. It is similar to the American type of property tax and excise-type differs from the rate of the UK. The tax authority at the state and is delegated by law to Local authorities, indicating the method of assessing the level of the group, as well as data collection procedures. Tax base year assessed value (ARV), or area-based ranking. Own and other properties not producing lease valued at cost, then converted to ARVs, using as a percentage of the cost, typically 6 percent. Vacant land is generally not taxed. properties of the central government exempted. Instead of ‘fee’ is permissible under the executive. Properties of Foreign Missions, the exemption from taxes, not the insistence on reciprocity. The tax is usually accompanied by a number of services taxes, for example, water tax, drainage, environmental (sewage) tax, lighting, all using the same tax base. The rate structure is flat on the rural (panchayats) properties but in the urban (municipal) areas it mildly progressive about 80% of the estimates fall in the first 2 plates. By all accounts, property tax, under-utilized in the municipalities, and not effectively used in the panchayat, mainly due to resistance to tax payer.
Netherlands
Property Tax (Dutch: Onroerend Ged belasting or Onroerende zaak belasting (OZB)) levied in municipal buildings through two stages: for those who live in the house and the house owner. When one has a rental house, he must pay only living part of the tax.
Britain
There is currently no ad valorem tax on residential property. Two former systems were dropped because of its extreme unpopularity. They were
* Schedule of income tax, central government, which is levied on imputed rent, ie rent that homeowners would receive the land from a tenant if they do not live in houses that belonged to them. However, the actual (as opposed to imputed) rent is still subject to income tax in the list;
* Prices, local tax on the government, which has been charged in proportion to the estimated value of the property. It was replaced with the Thatcher government, the Community obligations (commonly known as a “poll tax”), which proved even more unpopular than the rate, and was replaced by a mixed Council Tax, which combines elements of the property tax and poll tax. Prices are still (2010), levied on commercial property, although some types of insurance are not taxed.
United States
In the United States, property tax on real estate, usually levied by local authorities at the municipal or county level.
The evaluation consists of two components: the improvement or creation of value, and the land or site value. In some states, personal property, is also taxed. Tax expert is a public official who determines the value of real property for purposes of distribution of tax levies. An appraiser may work for public or private enterprises, and can determine the value of the property for any purpose. (Contrast with the tax value of the land.)
In determining residence, an appraiser investigates the selling prices of all other similar houses in the area, replacement value, if it is violated, and the most affordable price that a house should cost. In some areas, view and / or the environment can also be evaluated (see the View Tax). Then the appraiser assigns a value, which is usually within this range is calculated.
Tax Expert offices maintain inventory information about improvements to real estate. In addition, they create and maintain tax maps. This is achieved by surveyors. About Tax maps, individual properties are shown and given unique identifiers parcel (commonly known as Assessor Parcel Numbers - APNs, or property identification numbers - PIN-codes). Tax maps help to ensure that no properties are excluded from the tax rolls and no properties are taxed more than once. Property taxes are usually collected by an officer other than an expert. One example of the proposed reform is to create a “2 course property and land tax.
Evaluating individual property may be one or more of the common methods of assessment (eg, the income approach, market value or replacement cost). Assessment can be provided at 100 percent of the cost, or some smaller percentage. In most, if not all assessment jurisdictions, valuation made by the expert may be some administrative or judicial review if the appeal is established owner.
Ad valorem (value), property tax based on fair market value of individual provinces. Expert local tax then applies the required standards of assessment of the fair market value. Multiplying x tax rate for the estimated value of the property tax is calculated.
Property taxes imposed by counties, municipalities and school districts where Millage rate is usually determined by the county commissioners, city council members, members of the school board, respectively. Taxes fund the budget for schools, police, fire service, hospitals, garbage collection, sewage, road and sidewalk maintenance, parks, libraries and other expenses.
More recently, the U.S. tax rate on property has increased significantly above those found in other countries [citation needed] and over 5% in some states, thus becoming the main expense of housing after construction is completed.
Property taxes were once a major source of income at the state level, in particular, before 1900, which was submitted to the States went on to rely on income tax and sales tax as the main source of income.
After determining the budget for the municipal level, the legislative appropriation determines how the funds will be collected and distributed. After that, the tax authority levies the tax. May be appealed. Equal Board then considered equalizer to ensure fair treatment. Then the tax rate is determined by dividing the municipal budget to assess the role of the municipality. Multiplying the tax rate on assessed value of their property defines one tax bill.
In some jurisdictions, as the ad valorem and non-ad valorem taxes on property (better known as special assessments). The latter came in the form of fixed charge (regardless of the value of underlying assets) for such items as street lighting and manage stormwater. In some areas, some veterans of the armed forces, paid less than others.
In the United States, another form of property tax on personal property tax, which can orient
* Cars, boats, aircraft and other vehicles;
* Other valuable durables, such as works of art (mostly household items and personal belongings, as a rule, exempt);
* Business inventory;
* Intangible assets such as stocks and bonds.
In some states, it is permissible to divide the real estate tax in two separate taxes, one value of land and a building value. (See Taxation of land value.)
Personal property taxes can be estimated at almost any level of government, although they may be the most frequently evaluated states.
Some relief for homeowners in some districts. In California, in some countries, such as Los Angeles, Ventura and San Diego, the supply of housing exclusion for property owners who live in the house.
In Texas, property taxes used to finance school districts.
Impact
The examples and perspective in this section deal primarily with the United States and do not represent all over the world view of the object. Please improve this article and discuss this issue on the talk page.
Sprawl
In the absence of urban planning policies, property tax on real estate changes incentives for the development of land, which in turn affects the structure of land use. One of the major problems is whether it encourages cities.
The market value of undeveloped real estate reflects the current use of property, as well as its potential for development. As the city expands, relatively cheap and undeveloped lands (eg, farms, ranches, private conservation parks, etc.) increase in value, as neighboring areas have become a retail, industrial or residential buildings. This increases the cost of land, which increases the property tax, which must be paid to agricultural land, but not to increase income for the area available to the owner. This, coupled with higher selling prices, increased incentive for rent or sale of agricultural land to developers. On the other hand, the owner, who is developing a package must then pay higher taxes based on the cost of improvements. This makes the development less attractive than it would otherwise. In general, these effects lead to a low density development, which tends to increase the pace of urbanization.
Attempts to reduce the impact of taxes on property in the expansion include:
* The cost of land tax - This method separates the value of the property in its actual components - land value and improvement value. Slowly lower and lower tax is levied on value and improving the higher tax is levied on land value, to ensure revenue neutrality. This method is also known as a two-level or split-rate taxation.
* Current estimate of Use - This method assesses the value of the property based only on its current use. As the land value taxation, it reduces the effect of the city assault.
* Conservation easement - the owner adds a restriction on the property prohibiting further development. This effectively eliminates the potential for development as a factor in property taxes.
* Exceptions - When advocates of real estate classes (eg, farms, ranches, cemeteries or private conservation parks) from the property tax in whole or in assesing their value at the minimum amount (eg $ 1 per acre).
* Forcing high-density housing - in Portland, Oregon area (for example), local municipalities are often forced to accept higher density housing with small size lot. It is regulated by several County Council development control, in the case of the Portland metro.
* Urban growth boundaries or the Green Belt - the government says some land undevelopable so far in the future. This makes the regional development back to downtown, the increase in density, but also land and housing. It can also cause the development of skip Restricted zones occur in more remote areas, or to move to other cities.
Distributive
The property tax was invented by some to be regressive (ie, fall disproportionately on those with low income), if not properly implemented because of its impact on specific groups such as pensioners low-income/high-asset and farmers in drought years. Because these persons of high assets accumulated over time, they have a high responsibility on property tax, although they understood the low income. Thus, most of their income goes to paying the tax. In areas with the speculative appreciation of land (such as California, in 1970 and 2000), it may be little or no relationship between property taxes and the possibility of homeowners to pay their short sale of property [8]. This issue has been the main argument used by supporters of such measures as California Proposition 13 and Oregon Ballot Measure 5, some economists have even called for the abolition of property tax in general, should be replaced by income taxes, consumption taxes such as VAT in Europe or a combination of both. Others, however, argue that property taxes in general, progressive, because people with higher incomes disproportionately own more valuable property. In addition, while almost all households have an income, nearly a third of households own no property. Moreover, the most valuable qualities are the property of the corporation not individuals. Thus, ownership of more maldistributed, than income.
It has been suggested that these two beliefs are not incompatible - it is possible for tax to be progressive in general, but to be regressive in relation to minority groups. Nevertheless, although not direct, and hardly one-to-one property of the tenant may be subject to property, and taxes. If the tax reduces the supply of housing, it will increase the cost of rent. Thus, the cost of ownership tax transferred to the lessee (the passengers).
Progressive Politics
How to increase the property value is likely that new buyers may pay taxes on the old values in such a way that creates an unfair burden on other property owners. To correct this imbalance municipalities periodic revaluation of property. Revaluation of producing up to date values to be used in determining the tax rate necessary to produce the necessary tax revenue.
The consequence is that existing owners and are revalued and the new owners and, therefore, must pay taxes on property whose value is determined by market forces, such as luxury housing in areas with low-income city. In order to facilitate the often large tax burden on the existing owners, in particular fixed income, such as the elderly and those who lost their jobs, communities have introduced incentives.
In some states, laws provide for exemptions (commonly referred to as homestead exemptions), and / or restrictions on the percentage increase in tax, which limits the annual increase in property tax to owner-occupants did not “taxed out of their homes.” Typically, these exemptions and ceilings are only available for owners who use their property as a principal residence. Farmstead exclusions typically can not qualify for investment properties and second homes. When a homesteaded property ownership changes, property tax is often sharply and the price of the sale of property, may become the basis for new exceptions and limitations available to the new owner-occupant.
The farmstead exclusion increase the complexity of property tax collection, and sometimes provide an easy opportunity for people who own several properties benefit from tax exemptions to which they are not eligible. Since there is no national database that links home ownership to social security numbers, owners of estates sometimes receive tax credits, claiming several properties in different states, and even their own state, as their “principal residence”, and only one property actually stay. In 2005, several U.S. senators and congressmen were recognized wrongly claimed a “second home” in the greater Washington, DC, as their “main residence”, giving them property tax relief to which they are not eligible.
Undeserved credit emancipation estate has become so prevalent in Maryland that a law was passed in 2007 legislative session requires checking the main residence with a Social Security number match system.The bill was passed unanimously in the Maryland house of delegates and the Senate, the Act was signed by the Governor. fairness property tax collection and distribution of a hotly debated topic. Some people believe the school system will be more uniform if the taxes were collected and distributed at the state level, thereby leveling the financing of school districts. Others do not want to have a higher level of government pricing and distribution, preferring to leave the decision on the level of government “closer to the people.”
In Rhode Island, efforts need to change the practice of re-evaluation to keep the main advantage of property taxation, the reliability of tax revenues, while ensuring that some people consider correcting the inequitable distribution of tax burden for existing property owners.
The Supreme Court ruled that Congress could directly tax land ownership until such time as the tax is distributed between States on the basis of representation / population. In a distributed land tax, each state will have its own level of taxation sufficient to raise the prorated share of total income, which will be financed by land taxes. For example, if the state has 5% of the population, the state will collect and transfer to the federal government of tax revenue, representing 5% of the profit sought. Such distribution of taxes on land have been used in many cases up to the Civil War.
Indirect taxes on the transfer of land is allowed without the distribution: in the past, it takes the form of demands for revenue stamps must be affixed to deeds and mortgages, but they are no longer required by federal law. In the Tax Code, the Government understands the significant amount of revenue from income tax on capital gains from the sale of land and real estate taxes over property (including land) in case of death of its owner.
The Supreme Court has ruled on the question of whether Congress can impose a tax on unapportioned “privilege” of land ownership rights to the “measure” tax value of the land.
Milton Friedman noted that “[T] he property tax is one of the least bad taxes, because this subject that can not be produced - the part that will be levied on the land.” 2008 analysis by the Organization for Economic Cooperation and Development, in accordance with the opinion of Friedman, to study the effect of different types of taxes on economic growth, it was found that the property tax, it seems, [ed] the most favorable for growth, then consumption taxes, and then personal income tax.