Real Estate Property Tax

July 27 2008 by author in Real Estate Property Tax |Comments Off

Reader’s Question:

Our family is originally from New Hampshire which is considered as a tax free state or a state where tax burden is lighter, so to speak. That’s why when I got married and moved to Dallas, everything seemed so new to me. My husband usually travels overseas. I am now obliged to check on domestic affairs and have come across on issues about real estate taxes. What is property tax and who decides how much the property tax will be?

Samantha

Dallas, TX

Property tax is an “ad valorem” (based on the value) tax imposed on persons because of their ownership or possession of property and is measured by the market value of the said property. Let’s classify the types of property, which is divided into two categories:

  • Real property- includes land, anything permanently attached to land (e.g. houses), improvements to land, structures, and certain equipment affixed ; immovable manmade objects.
  • Personal property -the primary characteristic of personal property is its mobility. Examples of personal property include furnishings, machinery and equipment, fixtures, supplies, tools, cars, boats, livestock, personal effects and household goods.

Perhaps you are also wondering how tax is determined, right? Well, the tax rate for residential property is determined by taking the residential share of the property tax levy (the amount of the total tax dollars to be paid by residential owners) and dividing that amount by the total assessed value of all residential properties. Tax assessors determine the market value of each and every parcel of property in the city and decide how much the property tax will you’re your tax district determines the amount of money needed and makes computations on the tax rate necessary to raise that money. Property tax due on an individual property will be based on the combination of tax rates and the appraised property value.

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