Types of Property Taxes
There are a lot of different taxes that are imposes all over the globe. Tax that is imposed towards the
owners of certain property within their jurisdiction by the municipalities is known as Property Tax.
Property tax or also known as mileage tax in certain countries around the globe are normally according to
value of the property itself. The tax is one type of ad valorem which an owner of a property is needed to
pay a certain value of tax 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 are define as movable man-made objects on the land and this make the immovable
man-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 are assigned to perform the appraisal. The used of this property tax
is different among the countries and its jurisdiction depending on the policies of each country.
Often this type of tax is mistaken as the special assessment tax but both forms of tax are distinct to each
other. As property tax is depending upon the valuation of property based on 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 the value of the property itself. In order to
calculate property tax for a property with certain value, the value of the property will be multiply with the
assessed rate for the property with the mileage rate, followed by dividing the value by 1,000. Let's take an
example, property that has an assessed price of $40,000 located within a municipality with the mileage rate of
25; the property itself would have a yearly property tax of $1000.