The Secrets of Personal Property Taxes and Property Taxes

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Property taxes are more expensive than ever because of the government needing more money to operate. A consumer not only pays property taxes on his or her home, but also for on the land that the home sits on. The taxes paid depend on the size of the home, and the market value of the land and home. Property taxes are calculated using market value and multiple that value by the tax rate for the city or county. Once calculated those funds are utilized to support the local government’s budget.

Personal property taxes, on the other hand, varied state to state, but they are usually levied on the varied large items that you own like boats, automobiles, recreational vehicles, motorcycles, utility trailers, aircrafts, mobile home, etc.

There are some facts that would help you understand the personal property taxes better:

1. The personal property tax also called excise tax is assessed by the state in which your vehicle and/or the other items are registered.

2. All the states have different methods for calculating and collection of the tax.

3. For instance, in some states you have to pay excise or personal property tax on one year’s value of the vehicle as from the date of registration. Onwards you have to pay the personal property tax based on the depreciated value of the vehicle when you get your license plate renewed.

4. Some states the license plates are renewed in January. In other states, the license plate’s renewal date is on the birthday of the person on whose name the vehicle has been registered. Still yet, in other states, the personal property taxes or excise taxes are collected year round.

5. There are states that send tax bills to the residents inclusive of all the personal property that the resident owns and the resident is expect to pay it then.

6. The rates at which the personal property taxes are charged vary form state to state. One common factor is that they are all based on the values of the items registered.

7. Generally in many states, the personal property tax is further used to fund the Department of Motor Vehicles’ budget, and also possibly the other local and state governments.

8. The excise taxes can also be used to pay the salaries of DMV workers along with the building space, other supplies, etc.

9. In some states, personal property taxes are more important than the real estate property tax.

10. However, irrespective of the term or denomination, these taxes are quite different from each other and different in each state, as well. In addition, each state utilize the collected funds whether property taxes or personal property taxes quite differently.

11. The property taxes charged against the house and the other properties you own generally cater to the county and/or city government. In general, these funds spend this money for the betterment of the society in the form of roads, schools, police support, local government, fire support, etc.

12. However, the individual needs to pay both the taxes that are city & county property taxes.

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Originally posted 2010-03-20 11:44:04. Republished by Blog Post Promoter

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