Property taxes or millage levels are ad valorem taxes on property values, usually subject to real estate. The tax is levied by the regulating authority of the jurisdiction in which the property is situated. This could be a national government, federation state, regional or geographical area or municipality. Some jurisdictions may impose a tax on the same property. This tax is comparable to a rental tax based on calculated rental or rental income, and land value tax, which is a levy on the value of the land, excluding the value of the building and other increases.
Under the property tax system, the government requires or assesses the monetary value of each property, and the tax is valued at proportion to its value.
Video Property tax
Type
Four types of large property taxes are land, land repairs (immovable human objects, such as buildings), private property (movable man-made objects) and intangible property. Real property (also called real estate or realty) is a combination of land and repairs.
The forms of property taxes vary across jurisdictions. Real property is often taxed by its class. Classification is a grouping of properties based on similar usage. Properties in different classes are taxed at different rates. Examples of property classes are residential, commercial, industrial and empty properties. In Israel, for example, property tax rates are doubled for empty apartments compared to occupied apartments.
Specific assessment taxes are sometimes confusing with property taxes. These are two different forms of taxation: one (adivorem tax) is dependent on the fair value of the property market. The other (special judgment) depends on a special improvement called "benefit" for its justification.
The property tax rate is usually given as a percentage. This can be expressed as per mile (the tax amount per thousand units of the property value), also known as millage level or mill (one thousandth of a currency unit). To calculate the property tax, the authority multiplies the assessed value by the grinding rate and then divided by 1,000. For example, a property valued at $ 50,000 located in a municipality with a milling rate of 20 plants will have a property tax bill of $ 1,000 per year.
Maps Property tax
Jurisdiction
Property classes, tax rates, assessment rules, and ratings vary by jurisdiction.
Australia
Australian property is taxed at the state and municipal (local) city levels. Taxes are paid by the property owner - no property taxes are charged to the lessee.
State taxes commonly called "stamp duty" are valued when property is purchased or transferred. Usually about 5% of the purchase price, paid by the buyer. Other transfer fees may also apply, including special charges to foreign investors.
"Land Tax" - also state tax - is valued annually based on the value of the property. Most Australians do not pay land taxes, as most countries provide land tax exemption for primary homes or residences. Depending on the country, additional tax rates may apply to foreign owners.
"Board level" is a city tax imposed by the local government. These are valued annually based on property values. Board rates are around $ 1,300 per year for an average Australian household.
Brazil
Brazil is the Federation Republic, and its federal entities (State and Internal States), as well as the Federal government, property taxes levies. They are all declared in the Federal Constitution.
This is the current property tax:
- Rural Property Tax - Rural: levied on real country property in rural areas;
- Urban Territorial Property Tax - municipal: levied on real state property in urban area;
- Motor Vehicle Tax - state: collected on the property of cars, trucks, motorcycles, and so on;
- Tax on Big Fortunes - federal: it is declared in the Federal Constitution, but there is still no regulation defining the incident.
Canada
Many provinces impose property taxes on real estate based on land use and value. This is the main source of income for most municipalities. While property tax rates vary across cities, the assessment of public property or assessment criteria is governed by provincial law. The tendency is to use market value standards for assessment purposes with various revaluation cycles. Some provinces form an annual review cycle in which market activity guarantees, while others have longer periods between appraisal periods.
Calculating Individual Property Tax
In Ontario, for most properties (eg, housing, agriculture), property taxes can be calculated by multiplying the gradual assessments shown in the Property Valuation Notice by tax rates.
The city tax rate x increments in the valuation for a given tax year = the portion of the city tax.
Regional/x regional tax rate gradually in the assessment for a particular tax year = regional tax/regional tax.
Education tax rate x gradual assessment for a given tax year = portion of tax education.
Part of city area tax/part regional tax section education tax = Total Property Tax.
In some cases (eg commercial, industrial, multi-residential property), the Province or municipality may apply measures affecting the actual tax paid on the property.
Land Transfer Tax
Land transfer tax is a provincial tax imposed when buying a house or land in Canada. All provinces have land transfer taxes, except Alberta and Saskatchewan. In most provinces, taxes are calculated as a percentage of the purchase price. In Toronto there are additional city taxes.
Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first time home buyers.
British Columbia
In British Columbia, property transfer taxes equal one percent tax on the first $ 200,000 of the purchase price, two percent of the remaining amount up to $ 2 million and the remaining three percent. A 15% additional tax that applies only to non-resident foreigners in Greater Vancouver begins August 2, 2016. The definition of foreign buyers includes international students and temporary foreign workers. Anti-evasion measures include a $ 100,000 fine for individuals and $ 200,000 for companies.
First home buyer program
First Time Home Buyer Program is a program by the BC government that offers first-time home buyers who qualify for the reduction or removal of property transfer taxes. It can be used in conjunction with B.C. Mortgage Partnership and Owners' Equity.
New home release
Newly Built Homes is a program that reduces or eliminates property transfer taxes in new homes. The amount is limited to $ 13,000 for eligible individuals who must be Canadian citizens or permanent residents. The purchased property must be located in British Columbia, has a fair market value of $ 750,000, smaller than 1.25 acres and is used as a principle residence. It can be used in conjunction with B.C. Mortgage Partnership and Owners' Equity.
Chile
Land property tax, called "territorial tax" or "contribution", is the annual amount paid every three months by the property owner. This is determined as a percentage of the "fiscal value" of the property, calculated by the Internal Revenue Service, based on the land and building area, building materials, age, and use of the property. Fiscal value, which is usually much lower than market value, can be disputed by the owner. Annual charges vary between 1 and 2% of this value, depending on the use of the property (residential, agricultural or commercial). Residential properties valued under US $ 40K (per 2013) are not taxed; those above the threshold are taxed only in excess of US $ 40K. Income goes to the municipality to manage the property commune. All municipalities donate a portion of the revenues to a "mutual municipal fund" which is then redistributed to the municipality according to their needs (poverty level, etc.). In addition, municipalities collect rubbish collection taxes every three months, which are often paid in conjunction with territorial taxes (if any).
Egypt
The law imposes a tax on any property. Public buildings are excluded (such as government buildings), as are religious buildings (mosques and churches). Families with personal property worth up to LE 2 million ($ 290,000) are waived. a commercial store with an annual lease of more than LE 1,200 is not excluded.
Greek
Greece owns Township and Government property taxes. The municipal property tax (??????????????????) is included in the electricity bill and incorporates, among other things, the costs for cleaning and street lighting. Government property tax (ENFIA) is a combination of individual asset tax based on floor area and progressive real estate property tax per individual based on estimated net worth of all property and can reach 2%.
Hong Kong
In Hong Kong, "property tax" is not an ad valorem tax ; actually it is income tax.
According to the IRO s5B IRO Revenue Act, all property owners are not subject to this tax unless they receive consideration, such as rental income for the appraisal year. Property taxes are calculated at a value that can be assessed net at the standard rate. The assessment period is from 1 April to 31 March.
Net-value can be
The formula is:
- Net assessable value = 80% of assessable value.
- Property tax debt HK = Net valuation value X Property tax rate standard
- Rated value = Premium rental income (Lease bad debts - Unrecoverable rental) - Price paid by owner.
India
Property tax or 'house tax' is a local tax for buildings, along with unprofitable land. It is and imposed on the Owner (not a property keeper as in 1978, 44 amendments to the constitution). It resembles a US type property tax and differs from the UK tariff rates. The power of taxes is held in the state and delegated to local agencies, determining the method of appraisal, band rates, and collection procedures. Tax base is the annual rental rate (ARV) or area-based rating. Owners and other properties that do not generate rent are assessed on a cost basis and then converted to ARVs by applying a percentage of costs, usually four percent. Empty ground is generally excluded. Central government property is excluded. Instead 'service fees' are allowed under an executive order. Foreign mission property also enjoys tax exemption without requiring reciprocity. Taxes are usually accompanied by service taxes, for example, water taxes, drainage taxes, maintenance taxes (sanitation), lighting taxes, all using the same tax base. The flat tariff structure is in rural (panchayat) properties, but in urban areas (cities) it is somewhat progressive with about 80% of the valuations falling in the first two brackets.
ireland
Local Property Tax takes effect in the Republic of Ireland on 1 July 2013, and is collected by the Income Commissioner. This tax applies to residential properties. The owner of the property is responsible (although in the case of rent for twenty years, the tenant is responsible). Revenue funds provide services by local authorities. These services currently include public parks, libraries, open spaces and recreational facilities, planning and development, fire and emergency services, road maintenance and cleaning and lighting.
Taxes are based on market value, taxed through the market band system. The first national tariff rate of the tax is 0.18% of property value up to EUR1 million. Property worth more than EUR1 million is valued at 0.25% of the excess. Starting January 1, 2015, local authorities may vary the LPT level -/15% of the national center rate.
In the case of property valued at more than EUR1 million, no applicable city - 0.18% is charged on the first EUR1 million (EUR1.800) and 0.25% on the balance. The government estimates that 85% to 90% of all properties fall within the first five taxes.
Jamaica
This tax is paid annually and is based on a percentage of non-enhanced property values.
Lithuania
The tax period for property tax is the calendar year. Property tax rates ranging from 0.3% to 1% of real estate tax rates are determined by the municipality.
Since 1 January st 2015 if the property value of a person is higher than 220 000 euros, 0.5 percent property tax is applied for an amount exceeding.
Luxembourg
The property tax in Luxembourg is calculated on the basis of the "unity value" of property determined by the tax authorities and collected by the communes. The tax is calculated as the value of property unit * level of rating * communal level. The rating level is determined by the legislator and generally ranges from 0.7% to 1%. The communal level is governed by communal authorities and varies from 120% to 900% depending on the municipality.
Luxembourg has a minimal property tax compared to its neighbors in Benelux or in the European Union. The amount is approximately EUR150 for an apartment EUR500 000 in Luxembourg City.
Dutch
Property tax (Netherlands: Onroerendezaakbelasting (OZB) ) is collected from the property on the basis of the municipality. Only residential property owners and those who rent/own a commercial space are taxed. People who rent a house do not pay property taxes. Cities combine their property taxes with taxes for garbage collection and for sewer systems. Property and property owners and land also pay taxes based on property values ​​to water boards for flood protection and water and wastewater treatment ("waterschapsbelasting"). The percentage of home value (" huurwaardeforfait ") is added to the owner's income, so homeowners pay more income taxes. All property-related taxes are based on home values ​​estimated by the municipality.
United Kingdom
In the UK, property ownership or residential land is not taxed, an almost unique situation in the OECD. In contrast, the Council's taxes are usually paid by the resident of a property, and only in the case of unused property, the owner becomes liable to pay it (although the owner can often obtain a discount or an exception for an empty property).
Her Majesty's Revenue and Customs (HMRC) Policy states:
- "Board tax is a tax on property, in principle, this may be the allowable deduction in cases where other property-based expenditures are deductible."
The Valuation Tribunal Service states that:
- "Generally, where two or more people live in the residence, the full tax is paid out.If one person resides in the dwelling then 75% is payable only vacant residence only charge 50% unless the billing authority has determined otherwise. "
Board tax depends on property values, but does not count as a simple percentage. Instead, the property is allocated to the Tax Tape Board, (9 in the UK and 8 in Scotland and Wales). Assessment is done by the Office of Valuation Office under the auspices of Her Majesty's Revenue and Customs (HMRC).
United States
In the United States, property taxes on real estate are usually levied by local authorities, at the city or district level. Rates vary across states, between about 0% and 4% of home values. This assessment consists of two components - the increase or value of the building and the value of the land or site. Property taxes are the main taxes that support local education, police/fire protection, local government, some free medical services and most other local infrastructure. Many state and local jurisdictions add personal property taxes. (See the exceptions below.)
Place without property tax
Africa
- Kenya
- Mauritania
- Namibia
Europe
- Ã, Faroe Islands
- Malta
Oceania
- Palau
- Norfolk Island
- Ã, Cook Islands
Asia
- China
United States
In Alaska, "... only a fraction of the property property tax... only 24 municipalities in Alaska (either city or borough) are levying property taxes." There are no taxes on private land in American Samoa, the Palmyra Island or Kingman Reef Territory in the Pacific Ocean region.
See also
- Allodial Title
- Land value tax
- Udal Title
References
Further reading
- Slack, E., & amp; Bird, R. M. (2014). Political Economy Property Tax Reform, OECD Work Papers on Fiscal Federalism 18, OECD Publishing.
Source of the article : Wikipedia
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