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What are the common Property Tax Myths and Misconceptions

What are the common Property Tax Myths and Misconceptions

 

Taxes are a tough bet for anyone and when tax season comes around most people run around to complete their tax forms to file their returns on time. No one wants to make a mistake or a miscalculation and end up under the Internal Revenue Service’s radar. That is why if you are unsure about handling tax returns on your own and want to file it well in time, you should contact a professional tax preparation company like the Rincon Controller and Tax Services in Carpinteria, CA to help you out with the process.

 

These tax preparers are skilled in helping you out with any kind of taxes that include property taxes. If you are going to buy a property or own a property already, but are unaware of the taxes that you have to pay on them, these tax preparers in Carpinteria, CA will help you out.

 

There are also several myths about property tax people still have, which makes them think twice about getting a property or makes them file the wrong returns.

 

Doing Away With Property Tax Myths

 

But the important thing to remember is that these are myths and it should not influence your tax returns. Some common property tax misconceptions are:

 

Property taxes determined by assessors

 

It is not true that the assessors decide the property tax; rather they assess what the value of the property will be on the market. This is then multiplied by the rate of tax and this then determines the tax on the property.

 

Thus, the rate of tax is a crucial factor in determining your property taxes and this rate is generally given by local government bodies like city legislatures etc. If you need any more help in determining property taxes, you can take the help of the tax preparers in Carpinteria, CA.

 

High property taxes are due to subjective assessments

 

It is true that sometimes property tax may end up being quite high as compared to other taxes but that is not because of the assessment of the market value. Rather it is because the rate of the tax on these properties may be high.

 

But you cannot change this. You can only try to appeal against any assessment you feel is unfair and try to get a better assessment so that you can somewhat reduce your taxes. Let the tax preparers in Carpinteria CA help you file an appeal against wrong assessments.

 

States collect most of the property taxes

 

This is not true as most of the property tax revenue is actually collected by the local government bodies and not the state government. The state in fact gets only around 2 per cent of their total tax revenue from these property taxes and in some states; they let the local government bodies collect all the property tax.

 

Only in certain states where there may be no income or sales tax or if it is not sufficient, does the state collect most of the property tax revenue. The tax preparers in Carpinteria CA can help you determine where your state government lies in regard to this.

 

High property taxes mean a raise in taxes

 

This is not true as property taxes depend on both the rate of tax and assessment of the market value of the property. If the rate of tax is the same but your property value has gone up, then you will have a higher property tax.

 

But there has been no increase in the tax rates as such. Thus both factors need to be taken into account, if there is an increase in both then we can say that taxes have increased.

 

Property taxes are reduced by assessment caps

 

The problem with assessment caps is that they do not let property assessments go beyond a certain limit. But in doing so, many times high-end properties are not assessed at the right value. Hence, they end up paying pretty much the same tax as a person with an older property, whose value has not really risen in the market.

 

Property taxes can be confusing at times and it is always better to get help from a tax preparer in Carpinteria to sort out your tax issues so you can file the correct returns. A good tax preparation company in Carpinteria is the Rincon Controller and Tax Services.

 

Just click on the profile below to talk to a qualified tax professional today and have all your property tax woes sorted out. They ensure that you pay just the amount that you are required to.

 

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