Real Estate Tax
The different types of properties can be broadly categorized into three types:
The term real estate can be applied to mean realty, real property, land, developments to land and a number of other combinations. For the purpose of imposing real estate tax, the taxation authority carries out an evaluation or appraisal of the value of the real estate. This appraisal is a necessary and mandatory process and the assessment of tax is performed according to the value of the real estate.
The types of real estate tax, which are in application, differ from one country to another. The real estate tax rate is frequently represented as a percentage. However, it is also represented as a millage rate, permille or mill levy. For calculating the real estate tax, the appraised value of the real estate is multiplied by the millage rate and subsequently it is divided by 1000.
In the U.S., the assessment or appraisal of the real estate is normally carried out at the county or municipal tiers by the local government. Real estate tax is an important source of revenue for the United States government.
The appraisal process of real estate in the U.S. consists of two constituents: the development or construction value and the value of the location or land. The person responsible for carrying out the appraisal process is known as the tax assessor.
Another type of real estate tax is imposed in the United States, which is known as personal property tax. They are levied on the following:
- Boats, airplanes, automobiles, and other types of cars
- Precious durable items like artwork
- Commercial stock
- Nonmaterial properties like shares and bonds