Neglog - Taxes Property : House tax

Property tax also means house tax that is levied on house owners by the local self government of a town or city, the municipality.
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* Income Tax
* Property Tax

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* Financial

Location:
* New York - US

Jan. 28, 2008 - PRLog -- This is one of the main revenue streams for any municipality to manage the city. The property tax is collected on a yearly basis by the municipality. The fund collected in the process is sufficient to run the civic services of the city such as repair and maintenance of the road, execution of new infrastructure works such as flyovers and grade separators to decongest the busy roads of the city, safe and efficient garbage disposal and solid waste management, providing basic amenities to the localities such as parks and playgrounds, managing the storm water drainage system and treatment of the waste water. There are other basic functions such as maintaining cleanliness and health of the city that are taken care of through collection of property tax.

The basis for determining the property tax is the capital value of the building or the property. The capital value is fixed as per the property guidance value proposed by the government. The property guidance value proposed by the government differs in each locality. The property guidance value is revised once every four years by the government depending the development activity taking place in the city or town. The property guidance value is more of locality specific nature. The property guidance value in the central business districts of the city is always higher when compared to the residential localities. This is so because the value of the land in the central business districts is high because of the huge demand it has.

Besides, the property tax is different for a residential building and a commercial building. While the property tax for a residential building is nominal across the locality, the property tax of a commercial building varies depending on the changes executed on the building. It could be fresh additions or alterations of the building leading to higher rent realization. As the rent sores due to demand for office space, so does the property tax. Though the property guidance value provided by the government acts as the base, several other factors could increase the property tax rate. It could be the use of water, employment of the sewerage connection and subscribing to garbage disposal service.

On the contrary, the house tax or the property tax levied on individual houses is less. If the house constructed in a particular area has been earmarked for demolition and redevelopment, its property tax could go up substantially since it would be considered a new building. However, in case of old houses in areas, which have high property guidance value, the municipality offers depreciation. It means the house owner will be paying the property tax in accordance with his capacity to pay.


However, the municipality will collect large amounts of property tax from real estate developers, shopping malls, multiplexes and many other prime properties. They are made to pay a higher property tax since their income from the projects is higher when compared to an individual house owner.

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Tags:Income Tax, Property Tax
Industry:Financial
Location:New York - United States
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