What are Property Taxes and Why Do We Need to Pay Them?
November 8, 2023 | Posted by: Sherry Corbitt
What are property taxes?
Anyone who has owned a real estate property has experienced spending their hard-earned money on property taxes. These fees are due every year, so what are these funds used for? These funds are used to maintain local services including schools, parks, roads, and other amenities! The amount of these fees is based on both the size and the location of the property. Although, generally as a neighborhood experiences new development (an increase of homes and new amenities) the property taxes will also increase. This adds an additional expense for homeowners but also creates a more desirable community environment.
How do you pay property taxes?
Payments for property tax will vary depending on municipality regulations. Although, all homeowners will receive an Interim Statement in the mail, which is a document that reflects the balance due for that period. Homeowners can make the payment whole, or will also have the option of payment options. Homeowners may also contact their mortgage lender to see if they allow incorporating property taxes into the regular mortgage payments. This combines both the mortgage and property tax payments, and the lender will pay these funds to the municipality on their behalf.
If an owner does not make property tax payments on time, often there are interest penalties. The fees and penalties will differ for each municipality, although most may charge 1-2% interest on the outstanding fees. If the taxes go unpaid the municipality may additionally place a lien on the property to recover the funds.
If you would like to learn more about property taxes or inquire about a specific area’s taxes, please reach out!
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