Real Estate Taxes The Same As Property Taxes
When purchasing a property, the buyer must take into consideration the additional costs associated with owning and maintaining the property. One of these costs is property taxes, which are levied by the local government based on the assessed value of the property. However, some people may confuse property taxes with real estate taxes, assuming that they are the same thing. In this article, we will explore the differences and similarities between real estate taxes and property taxes.
What are Property Taxes?
Property taxes are taxes levied by the local government based on the assessed value of the property. The assessed value is determined by the local government’s tax assessor who takes into account various factors such as the size of the property, its location, and any improvements made to the property. Property taxes are typically used by the local government to fund various services such as schools, roads, and public safety.
What are Real Estate Taxes?
Real estate taxes refer to taxes levied on the ownership of real estate property. This includes taxes on land, buildings, and other structures. Real estate taxes are typically used to fund various services such as schools, roads, and public safety, just like property taxes.
What are the Differences?
The main difference between property taxes and real estate taxes is that property taxes are based on the assessed value of the property, while real estate taxes are based on the ownership of the property. This means that property taxes can vary depending on the value of the property, while real estate taxes are usually a fixed percentage of the property’s value.
What are the Similarities?
As mentioned earlier, both property taxes and real estate taxes are used to fund various services such as schools, roads, and public safety. Additionally, both property taxes and real estate taxes are levied by the local government and are mandatory for property owners to pay.
Conclusion
In conclusion, while property taxes and real estate taxes are not the same thing, they are similar in that they both serve the same purpose, which is to fund various services provided by the local government. It is important for property buyers to understand these differences and similarities so that they can properly budget for the additional costs associated with owning a property.