What Is Property Tax?

by | Aug 16, 2018 | Finance, Real Estate Glossary

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If you’re a potential home buyer, you’ve probably estimated a mortgage payment. One of the items that will make up your monthly mortgage payment is property tax. In this article we will cover what it is and how to find property tax. 

But, what is property tax?

Quite simply, property tax is a real estate tax which is paid by the owner of the property. The tax is usually based on the value of the owned property, including land. So, it includes all tangible properties including homes, offices, buildings, land, etc.

How much is property tax?

The rate of property tax differs from one jurisdiction to another. Therefore, when looking to purchase a property, you should ask about the tax laws that apply in that specific area.

What are the different types of property tax?

Property tax can be broken into two types: personal and real. Personal property tax pertains to the mobile aspects of the property, such as furniture, inventory, equipment, vehicles, etc. Real property tax, on the other hand, is levied on improvements and appreciation of the property.

What are property taxes used for?

There are many reasons, but the most important is that property tax serves as a steady source of revenue for the local government. The money is primarily used to fund water and sewer improvements, provide law enforcement and fire services. The money also funds education, road and highway construction, and other services that benefit the community-at-large.

Need help buying or selling a home?

Trelora real estate serves the Colorado Front Range, Summit County and Seattle Metro Area and our mission is simple: full service real estate for a fraction of the cost. When you hire a traditional agent to help you buy or sell your home, man cave or no, you pay that agent 3-6% of the home’s value.
When you hire Trelora, you pay one flat fee rather than a variable commission on the price of your home. You’ll also get best-in-class customer service. A team of expert agents who close hundreds of deals per year. And a proprietary technology platform that puts you in the driver’s seat and an average refund of $13,500 in Colorado and $18,000 in Seattle.

Brady Miller, CFA is Chief Executive Officer at Trelora, Inc. Brady joined Trelora in August, 2018 as Chief Financial Officer. He moved into his current role later that year and is responsible for all daily operations and growth of the broader real estate business. Prior to joining Trelora, Brady was Chief Financial Officer of Leeds West Groups which is one of the largest, and fastest growing automotive retailers in America. Brady managed their real estate portfolio, financing, human resources, and accounting. He earned a Charted from the CFA Institute in 2016 and holds a bachelor's degree from the University of Colorado, Boulder where he majored in Finance and Real Estate.

Thinking About Buying Or Selling A Home?

Get the best real estate advice from local experts in your inbox.

Thinking about buying or selling a home?

Get the best real estate advice from local experts in your inbox.