Property Tax: What You Should Know
November 17, 2022 | Posted by: Sherry Corbitt
As a homeowner, paying your property taxes is just one of the many responsibilities involved. Paying these taxes is a task which you need to come back to each year. Have you ever wondered what exactly your property taxes are, though? Consider what you should know about your property taxes, which will help you to become a more knowledgeable homeowner.
What Are Property Taxes?
Every homeowner must pay their local municipality a certain amount of tax money. Every homeowner's tax amount will be different since the amount is calculated by multiplying the property value by the municipal rate. What do these taxes go towards, though? Property taxes go towards many essential factors in a community, such as police, elementary schools, city maintenance, and community centers and parks.
How Are Property Values Determined
One of the two main factors in deciding what you will have to pay is your property value. Many Canadians may wonder if their value is accurate and done correctly, since they may feel that they are paying a significant amount. The government determines the value of every house in an organized and thorough manner. The amount is based on location, age, property type, and size. All these factors will impact how low or high your ultimate tax amount will be. Property tax is undoubtedly calculated securely, which can be dependable.
What Could Increase Your Property Tax
Other factors outside of the fundamentals could increase your property tax. The most common way a house's tax amount could go up is if that property has had construction or renovations. This can include inside and outside the home, from repairing a roof, kitchen, bathroom, and floors, or refurbishing a basement. In addition, many people ask if a pool would increase their property tax. The simple answer is yes. While all these elements could increase your property tax, your municipality's location will determine whether your amount will be drastically increased.
How Do You Pay Your Property Taxes
If you are still in your first year of homeowning, you will need to know how to pay your property taxes. There are a couple of options for you to pay your property taxes. The first is paying online, which is convenient for many. You can make the payment to your bank easily on your online account. If you prefer to do your property taxes in person, you can certainly do so. Go to your bank, and there will be bank advisors happy to assist you in paying. After you pay, though, you will want to have a receipt. You can receive a copy of your property tax statement online or a hard copy from your financial institute.
Questions or Concerns
Don't stay quiet if you have a viable reason to think that your property tax amount needs to be corrected. Although uncommon, it certainly is possible for there to be an error in your property tax amount. To double-check and get confirmation, make sure that you request a tax appeal. Include your full name, address, and assessment roll number. If you have documentation to back up proof of the error, make sure to include this so that they can better see and resolve the issue quicker.
Property taxes can be overwhelming, especially if you are a new homeowner. However, when you follow the proper steps to pay your taxes, you have nothing to worry about!
Sources
-Ontario (2022). Property Tax. Retrieved from https://www.ontario.ca/page/property-tax
-Toronto (2022). Pay Your Property Tax or Utility Bill. Retrieved from
-Waller, Ryan (2022). 11 Things You Need to Know About Property Tax (2022). Beth Ryan. Retrieved from
https://bethandryan.ca/11-things-you-need-to-know-about-property-tax-2022/#:~:text=What%20are%20property%20taxes%3F,for%20your%20class%20of%20property.
