Property tax is especially high in certain regions of the country. For example, New Jersey has a very high property tax rate, and many residents are moving out of the state because of these high fees. Land taxation, better known as property tax, is not something that is new for homeowners.
Land taxes have been assessed for thousands of years. Even in ancient Egypt, Persia and China, these taxes existed, albeit in a different form.
Historically, land was taxed based on the size of the land owned. But, this is not the ideal measure of the land's real value. If a person owns land in the desert, it is far less valuable because it cannot produce an income in the same way that a lush landscape would provide. These factors are what changed the way land taxation is determined.
How Land Is Taxed Based On Current Trends
Taxes on your land are assessed based on the income-producing capacity of the land. This is a very confusing measure because residential land isnt income-producing for most homeowners. So, income capacity is based off of the following:
* Structures on the property
* Agricultural equipment
But, many farms are able to enjoy tax perks, which well talk about shortly. Many local governments get the majority of their revenue from property taxes. This is why areas that are affluent often have better public school systems, roads and services provided to them. Every state, county and city will have a different formula for processing property tax.
A tax assessor is brought into the equation to determine the fair market value of the property wherein the tax-assessed value is normally 80% to 90% of the fair market value. The land itself will have a value. This is determined by the size of the land and its ability to make income. For example, farmland may have several fruit trees that would enhance the lands ability to make income. But, in a residential area the biggest influences are:
The value of the land itself
The structures that sit on the land
You'll also find that the location matters greatly with property taxes. Many homes, depending on the state, will have a higher property tax when theyre closer to the center of town. These are areas where the land is more desirable and have a higher value as a result.
So, if you have a remodeling job taking place, this may increase the total value of your home, resulting in higher property taxes. Your structure, or home, that sits on the land, will have the biggest effect on the property tax value.
The value of your home can be determined in a magnitude of ways. A tax assessor can come out and assess the value of your land and home, or the cost approach can be used for land that does not have improvements. The value of this land is determined by looking at a property that is similar in size and reducing the value of any improvements on the land. Its a very difficult and complex system that will vary from state to state.
That's why its important for you to know the taxation essentials to save yourself money and stay within the guidelines of the law.
Paying Your Property Tax
Property taxes are usually dealt with in the following manner: youll either have to pay a quarterly payment, or yearly payment. Quarterly installments may be provided, but youll want to check with your local city and state regulations to determine when property taxes are due. In most jurisdictions, youll be required to make a lump sum payment on January 1st.
Appealing Your Property Tax Assessment
What happens if your property taxes are too high? You may be able to appeal your property tax assessment. This is done in areas where the overall housing market is lower than it was in the past. For example, if the city's housing market took a dive and your house is worth less now than it was in the past, you may be paying a tax rate that is overvalued. Appealing a tax assessment will require a robust and complex assessment to take place.
Youll need to provide the following:
* Comparative market analysis of your home
* Photographs of the exterior and interior of your home
* The home's floorplan
* A list of repairs that the house needs
* A list of all buildings that may impact your land value
And, you may also find that grants and exemptions are available. Some cities will allow the elderly to have a tax exemption on the property they own, but this will vary from city to city, or state to state. Farmers, for example, may be able to take advantage of government grants that lower their overall land taxation.
If you own vacant land for investment purposes and there is no structure on the property, youll likely pay a rather low tax on your property. But this will depend on the location of your land. If you on prime land in the middle of New York City, you'll pay higher premiums than a piece of wooded land on the outskirts of the city. Its also important to know that some jurisdictions have limits on how high your property tax can be raised in a certain period of time.
Liens and Seizures
When taxes are not paid, interest will pileup and fines can be assessed. If you continue not to pay your property taxes, you may have a lien against the property. This is very important to know as a real estate investor because a property may have a lien against it. If you buy a property that does have a lien, youll be required, as the new owner, to satisfy the lien.
A lien is automatically applied in most cases and will be removed once the payment is provided.
In some cases, failing to pay your land tax will result in a seizure of the land. This means that you lose the entire property as well as any structures that exist on the land.
LandCentury.com specializes in selling wholesale real estate at the lowest prices. We believe that everyone should have the right and the opportunity to get a great deal on investment property All you have to do to get the property you’ve always wanted is follow these simple steps:
Step 1: Find the Perfect Property
Use LandCentury.com’s powerful network of real estate listings to find the property of your dreams. We have everything from move-in ready investment properties and cheap houses to rural land, buildable lots, and fixer-uppers. No matter what type of real estate you’re looking for, you can find it at LandCentury.com
Step 2: Click the Buy Button
This will start the purchase process. As one of America’s top online property listing sites, we leverage our unique business model of submitting an online payment to hold the listing to make transactions straightforward and secure. Our purchase process is designed for simplicity and security. Once you click the buy button, you will:
Use our secure site to submit your processing fee. We make every effort to protect your privacy. That’s one of the reasons why we offer a 24-hour money back guarantee on your processing fee, so you can feel confident in your transaction.
The seller will contact you within the next 24 hours procced to the next step and get the necessary info to prepare the contract.
Buyer Transaction & Privacy Protection
LandCentury.com stands behind our buyers, and we want you to know that your hard earned money is safe when doing business through us. That’s why we have a number of features to help protect buyers, including:
Symantec Secure Site SSL certificate, providing a $1,500,000 warranty on every transaction
Secure encryption and data protection
24 hour money back guarantee on processing fees
2 separate legal offices across the country to help you with any problems you encounter, anytime
Seller ratings so you can see what other people have to say about their experience with your seller
Still Have Questions?
We’d love to answer them. Check out our Help Center page or call us at 1-888-LAND-WEB (526-3932)
Our highly specialized support team is ready to find a solution to your problem. A people first policy insures that a team member will always be available to speak with you personally.
Symantec SSL Certificate
Symantec is a global leader in providing security, information management solutions to help our customers – from consumers and small businesses to the largest global organizations – secure and manage their information against more risks at more points, more completely and efficiently than any other company. Our company’s unique focus is to eliminate risks to information, technology and processes independent of the device, platform, interaction or location.
This website can secure your private information using a SSL Certificate. Information exchanged with any address beginning with https is encrypted using SSL before transmission. LandCentury.Com LLC has been verified as the owner or operator of the website located at www.LandCentury.com. Official records confirm LandCentury.Com LLC as a valid business.
Better Business Bureau
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at www.bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation.
BBB has determined that LandCentury.Com, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Web Site Anti-Malware Scan
GeoTrust is the world’s second largest digital certificate provider. More than 100,000 customers in over 150 countries trust GeoTrust to secure online transactions and conduct business over the Internet. Our range of digital certificate and trust products enable organizations of all sizes to maximize the security of their digital transactions cost-effectively.
The GeoTrust Web Site Anti-Malware Scan includes a daily malware scan to detect malware and alert you with detailed information to respond quickly to the attack. What happens if malware is detected on this web site? If malware is discovered, the GeoTrust Web Site Anti-Malware Seal no longer displays. When the scan confirms that all instances of malware are removed, the seal displays again.
If you feel that you have been a victim of real estate fraud, there are many resources available for you as the victim. Your first step is to contact the local District Attorney’s office and report the incident. Our office will stand by you and provide any relevant information to support your claim. Here are additional agencies that can assist you and provide more resources: