Real estate is subject to taxation by the local government in the area where the property is located. Assessments are done on property at the time of purchase and periodically thereafter in order to ensure that the property is valued correctly by the taxing authority. Taxes are calculated based on a number of factors that can include the type of structure, commercial or residential; the specific location of the property; the value of the property; and any renovations performed since the last assessment. In most cases, property taxes will amount to about 1.5 percent of the property’s assessed value. In most locales, property owners reserve the right to dispute assessment results for their property, in the event that they believe the assessed amount to be incorrect. Generally, property tax is collected by the locale in which the property is located and the county as well. It is a good idea to investigate all taxing authorities prior to purchasing a property.
