When you own a piece of land, whether that land has been improved or not, you are typically required to pay taxes on the value of the land. Taxes on raw land are generally less than taxes on properties that have a home or other buildings on them because the amount taxed is dependent upon the value of the property and improvements. Tax law is set by local government and the amount you must pay varies both depending on your state rules and on what your land and home are worth.
Types of Property Taxes
The money paid in property taxes pays for the services provided by the local government. This includes road maintenance, public education, police and fire protection services and the operation of local government offices. In some states or areas, you will receive a basic property tax bill that covers all of these different services. In other areas, you may receive separate bills for property tax and for school tax.
To determine the amount owed in property tax, the value of your land and of any improvements made to that land is determined by a county assessor. Typically, assessments are made when a property is first improved, such as when you build a home. If you add an addition or do other substantive improvements on the home that require a permit, your home may be reassessed to determine if its value has increased. In addition, most local tax authorities do periodic assessments to ensure that all property valuations remain up to date so that no tax revenue is lost.
Paying Property Taxes
If you believe your property taxes are too high, you are given the opportunity to appeal your tax assessment. Typically, you must attend a hearing in order to appeal and you must provide solid and substantial evidence. This evidence must prove that your home is overvalued in comparison to "comparables"- other similar properties in your local area.
Property taxes must always be paid by the required deadline, even if the amount owed is in dispute. Failure to pay by the deadline will result in interest and penalties. Tax authorities may also place liens on a home or foreclose on a home for non-payment of property taxes.
If you have concerns about your tax obligations, it is best to speak with an experienced attorney who specializes in property taxation issues.