Real Estate Analysis and Commentary

February 9th, 2023 2:51 PM
Property taxes almost always depend on what your property is worth. If you’re wondering how, exactly, they’re calculated, we have some insight to share with you.
 

Mill Rate


To calculate property taxes, cities, counties, and even school districts combine their own levies to work out a total tax rate for a region, which is called a mill rate.

The mill rate is multiplied by the assessed value of your property.

The more valuable your property is, the higher your property taxes are likely to be.
 

Property Values


Land and structures have different values attached to them. For example, vacant land without a house or a building will have a lower assessed value than a comparable piece of land that has a 4-unit apartment building on it.

Property improvements will also impact value. The upgrades and updates you made in order to raise your rental value will also raise your property value and your taxes.


Posted in:Real Estate and tagged: Taxes
Posted by Bob Peterson on February 9th, 2023 2:51 PMLeave a Comment

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January 11th, 2023 2:36 PM
What do we mean when we talk about property taxes?

That term can actually mean a lot of different things. You probably pay taxes on your own home - the one you occupy. As a real estate investor and property owner, there are also the taxes that you’ll pay on your investment property.

Tax time is often stressful, especially for those of us who cannot count on a juicy refund. That doesn’t mean it has to be awful. You know tax time is coming and you have a whole year to prepare.

Let’s take a look at what we’re working with so you know what we mean when we talk about taxes across the next few months.
  • Real estate taxes are levied on most properties in our market and even across the country. These real estate taxes are not federal; they’re paid to state and local governments, and they most typically fund local and state services and programs.
  • Personal property taxes are levied on mobile assets, not fixed and stationary assets like a home. Cars and boats are subject to personal property taxes.
Here’s a snapshot of what we mean, which might make it easier to conceptualize:

Real Estate
Taxes

Personal Property
Taxes

Single-family home that you live in.  

Car that you drive or purchase for someone else to drive.

Condo, townhome, or other multi-family property.  

Mobile homes.

Any rental or income-producing property you own.  

Planes, boats, motorcycles, and trailers.
Posted in:Real Estate and tagged: Taxes
Posted by Bob Peterson on January 11th, 2023 2:36 PMLeave a Comment

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