Mortgage Information and Resources
PITI
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Property Taxes
Property taxes are an Ad Valorem tax that the owner of real estate pays based on the value of the property. The
local government performs an appraisal of the value of your property. The amount of tax is then determined
in proportion to the value of your home.
The tax assessor office gathers information about sales or improvements to
real estate. They also use tax maps. The tax maps are used to make sure that all properties are accounted
for and none are taxed more than once.
Most municipalities use Ad Valorem as the guide for determining taxes. Under Ad Valorem property taxes are based on fair market property values of individual property. An assessor then applies an established assessment rate to the fair market value.
Real property taxes are usually collected by an official other than the assessor. The actual tax amount is determined by multiplying the tax rate by the assessed value of the property. These taxes are collected by municipalities such as cities, counties and districts and are used to fund municipal budgets for school systems, sewers, parks, libraries, fire stations, hospitals, etc.
