Property Taxes by State

In the United States of America, Internal Revenue Service is responsible for collecting federal taxes such as the income tax. However, states are also authorized to collect some specific taxes, such as the property tax. A property tax is basically an ad valorem tax. It is collected on the basis of the real estate owned by an individual or organization, such as a company or a corporation. In addition to the standard tax on real estate, it also extends to some valuable assets such as yachts, expensive collector goods, business inventory etc.

Facts About Property Tax

• The rate of taxation is a percentage that is prescribed by the state and applied to the value of property, that is evaluated by a tax assessor.
• The total amount of real estate tax that is paid to the state, becomes a valid ground for income tax deduction, according to IRS forms.
• On an average, real estate tax by state is used for public welfare services, by the state government. For example, in the state of Texas, this tax is used to fund public schools.
• The rate of taxation can go as high as 1.74% of the home value (for the state of New Jersey) and can also be as low as 0.14% (state of Louisiana).
• The commercial property tax may have some different terms and conditions for assessments as the property is used solely for the purpose of making profit, by giving it out for rent. The same goes for business property tax, as the property is used for the purpose of business operations. The industrial properties is another story, as it is used for production purposes. Thus, the purpose of the property, is also an important factor, when it is being assessed.
• The property tax changes every year as it is not under federal jurisdiction, and the amount of tax depends on the assessment of your real estate.

Property Taxes by State

State	Property Tax (Average)
Alaska	$2802
Alabama	$405
Arkansas	$690
Arizona	$970
California	$2640
Colorado	$1540
Connecticut	$4430
Columbia	$3379
Delaware	$950
Florida	$1625
Georgia	$1382
Hawaii	$1050
Iowa	$1940
Idaho	$1240
Illinois	$3290
Indiana	$1120
Kansas	$1960
Kentucky	$1065
Louisiana	$410
Massachusetts	$3260
Maryland	$2642
Maine	$1980
Michigan	$1980
Minnesota	$2346
Missouri	$1448
Mississippi	$780
Montana	$1774
North Carolina	$1180
North Dakota	$2647
Nebraska	$2832
New Hampshire	$4620
New Jersey	$6350
New Mexico	$870
Nevada	$1886
New York	$3740
Ohio	$1842
Oklahoma	$970
Oregon	$2052
Pennsylvania	$2096
Rhode Island	$3740
South Carolina	$696
South Dakota	$2084
Tennessee	$1045
Texas	$2150
Utah	$1320
Virginia	$2232
Vermont	$4170
Washington	$2120
Wisconsin	$3052
West Virginia	$610
Wyoming	$1092

(Please note that the tax figures, mentioned here, are indicative of the amount an individual needs to pay. These have been compiled by averaging the median cost per county to get a broader state-wise figure. Taxes vary substantially, as the market value of the property depends on the evaluation made by the assessor.)

The property or real estate taxes that are levied by state, are usually collected by the Department of Revenue, of that particular state. This tax is considered to be one of the biggest sources of income in almost all states. These taxes are basically used in order to fund the welfare activities such as construction of public amenities by states and local government. A tax assessor determines the value of a particular house or any real estate. There are two basic constituents of the property that are considered by the assessor. These are:

• The actual site value of the building according to original prices and actual market prices.
• The home improvements and upgradation of the house. The upgradation factor is always considered to be an addition to the value of the cost of the property.

The tax assessor is basically a public officer, however there are also some certified tax assessors who operate privately. The office of tax assessors, often maintain 'tax maps' that record and keep tabs of the rates of market prices as well as value-added improvements in the property. Apart from the tax maps, assessors also use the Assessors Parcel Numbers, which are unique identification numbers that help them and also taxpayers in tax filing processes. These tools are basically used to conclude the value of the property on which a specific tax rate is levied.

While filing for a property or real estate tax, it is essential to follow the guidelines that have been issued by the state. It is also recommended that you file for a tax deduction with the IRS on the basis of property tax that has been levied by the state. It can be concluded that the better the condition of your house in terms of home improvement, the better are your tax filing forms, as it shows a greater assessed value of the property and at the same time, home improvement costs become excellent grounds for itemized tax deductions of the IRS.