Your property tax assessment is a determination of the market value of your current property. As a homeowner, you will typically see these prepared around a certain time of the year. Your property tax assessment is based on recent sales of similar properties to yours around your area.
While governmental entities may assume that all homeowners know what their property tax assessment means, this is generally not the case. Most people receive their assessment and pay their taxes without any question as to what is assessed, when property is assessed, what their property taxes pay for, and more. The Hegwood Group takes a look at some of these areas of concern and more as we help you properly understand your property tax assessment.
What Do My Property Taxes Pay For?
Your property tax assessment is used by local governments as a starting point for your annual property tax bill. The remainder of your property tax bill is any exemptions qualified for and your property tax rate.
Your property taxes are actually a very significant revenue source in your community. Property taxes pay for the development and maintenance of schools, parks, and transportation infrastructures. Property taxes also pay for government employee salaries and local law enforcement and fire departments.
How are My Property Taxes Calculated?
Your property’s value is assessed on a certain date on an annual basis. Some areas do these assessments every other year. These differences also occur in the actual determination of the assessed value of your property. Some jurisdictions assess the value based on the market value of the property. Other areas calculate the market value by multiplying it by an assessment rate.
According to Investopedia, the property tax rate is a percentage by which the assessed value of your property is multiplied to determine your tax bill.
Your bill is also based on how your property is used. Some properties like religious buildings may be exempt, but typically, different uses are taxed at a different rate. For example, if your property is taxed as residential, it will be at a uniform rate of similar properties.
How is my Dallas Property Assessed?
Property tax assessments are usually carried out by the replacement method, the sales comparison method, or the income method. Governments will usually work off of one of these methods to determine your property tax.
The replacement method focuses on how much it would cost to replace your property. The sales comparison method is the method that is based off of the sales of similar properties in your community. Finally, the income method is based off of the income the property generates throughout the year.
Still Confused? Call The Hegwood Group
The Hegwood Group has been providing Dallas with property tax consulting services and compliance for business and real property for years. If you still have questions about your Dallas property tax assessment, give us a call today and find out how we can help you control this expense.
