What is a property tax?
Q: What is a property tax?
A: A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is imposed by the governing authority of the jurisdiction in which the property is located.
Q: How are multiple jurisdictions able to tax the same property?
A: Multiple jurisdictions may be able to tax the same property due to different laws and regulations in each jurisdiction.
Q: What are the four broad types of property?
A: The four broad types of property are land, immovable property, personal property and intellectual property.
Q: How does a government determine how much a person should pay for their taxes?
A: A government will typically perform an appraisal of the monetary value of each piece of real estate or other form of taxable asset and then assess a tax based on that value.
Q: What type of taxation system relies upon appraised fair market value?
A: An ad valorem taxation system relies upon appraised fair market value when determining how much someone should pay in taxes for their assets.
Q: How can you calculate a person's annual Property Tax bill?
A: To calculate an individual's annual Property Tax bill, you would multiply their assessed value by the mill rate and then divide by 1,000. For example, if someone has an assessed value of $50,000 with a mill rate of 20 mills, they would have an annual Property Tax bill of $1,000 per year.
