Understanding Property Taxes:
A Homeowner’s Guide
If you are looking to purchase a home off -boundary it is important to understand Property Taxes (also known as land taxes). These taxes help fund essential community services, and failing to pay them can lead to serious consequences. In this lesson, we’ll cover:
- Where and how to pay land taxes
- How property taxes are calculated
- The consequences of non-payment
- What tax dollars are used for
By understanding property taxes, you can avoid penalties and make informed financial decisions as a homeowner.
Please note that property taxes are only collected off -boundary.
1. Where & How to Pay Property Taxes
Property taxes are typically collected by your local county or municipal government. Here’s how you can pay them:
- Online Payments – Most local governments allow online payments through their website.
- By Mail – You can send a check or money order to your county tax offi ce.
- In-Person Payments – Some local offi ces accept cash, check, or card payments at their offi ce.
- Escrow Accounts – If you have a mortgage, your lender may collect property taxes as part of your monthly payment and pay them on your behalf.
To find out where to pay, check your county assessor’s website or contact your local tax office. You should receive an annual tax assessment or bill alerting you when your taxes are due. If you do not receive one and believe you are liable for property taxes contact your local tax office.
2. How Property Taxes Are Calculated
Your property tax bill is based on two main factors:
- Assessed Value of Your Home – This is the estimated market value of your home, determined by a local assessor. It may be based on:
- Recent sales of similar properties in your area
- Improvements or additions to your home
- Local real estate trends
- Tax Rate (Mill Rate) – This is the percentage of your property’s value that you owe in taxes. It varies by location and is set by local government agencies.
Your Home Value: $200,000
Tax Rate 1.5%
$200,000 X 15%
$200,000 X 0.015= $3,000
So, you would owe $3,000 per year in property taxes.
3. Effects of Non-Payment
Failing to pay property taxes can have serious consequences:
- Late Fees & Interest – A penalty is added to your tax bill, increasing the amount you owe.
- Tax Lien on Your Property – The government can place a lien on your home, meaning you cannot sell or refinance until the debt is paid.
- Foreclosure Risk – If taxes remain unpaid for a long period, the county may sell your home at a tax auction to recover the owed amount.
To avoid these issues, always pay property taxes on time or set up a payment plan if needed.
4. What Property Taxes Are Used For
Property taxes help fund essential public services that benefi t your community, such as:
- Schools – Funding for public education, teacher salaries, and school maintenance.
- Emergency Services – Police, fire departments, and emergency medical services.
- Roads & Infrastructure – Street repairs, snow removal, and public transportation.
- Parks & Recreation – Local parks, playgrounds, and community centers.
- Public Libraries & Government Services – Maintaining libraries, court systems, and other local government functions.
By paying property taxes, you are directly contributing to the quality of life in your
community.
Conclusion
Property taxes are a key part of homeownership. Remember:
- Find out where to pay – Check your local government’s website.
- Understand your tax calculation – It’s based on home value and tax rate.
- Always pay on time – To avoid penalties or losing your home.
- Know where your money goes – Schools, roads, emergency services, and more.
Being informed about property taxes helps you stay financially responsible and avoid
unnecessary stress.