by Lindsay Gough
on Tuesday, December 9th, 2014 at 12:00pm.
If you are a financially-savvy homebuyer, you probably have a budget and an appropriate price range for your home. Beyond the actual price of the home, however, there are other regular costs. One thing many buyers forget about is property taxes. Property taxes can add a significant amount to your monthly costs, so they’re important to remember. Here are some things to know about property taxes.
How much are property taxes?
The rate of property taxes differs from state to state, and even from town to town. In St. George, the property tax rate is approximately 1% of your property’s value. Property value is calculated using the market value of your land and the market value of your home. The value is assessed annually so your property tax can change as the St. George real estate market goes up or down.
What are property taxes used for?
Property taxes are used for local and city services such as schools, parks, libraries, city centers, and other public services offered by your town. This is why property tax is decided locally because the money is used locally.
How do I pay property tax?
Many mortgage companies incorporate property tax into your monthly mortgage payment and then send a tax check themselves. They do this because they are held liable if the taxes are not paid. Some loan officers may allow you to pay taxes on your own, but you must pay them on time. Failure to pay taxes could result in a foreclosure, even if you are paying your house payments. Talk to your loan officer to figure out the best solution for you.
What if I don’t agree with my assessed property value?
If your assessed property value raises significantly is one year, or you don’t think the assessed property value is right, you can appeal. You have to contact your local assessment office to figure out your town’s appeals process.
Who pays property taxes?
Almost anyone who owns property pays taxes. St. George has a few exemptions which include wounded veterans, dependents of deceased veterans, blind, and seniors 66 and older whose annual income does not exceed $31,208. Everyone else pays a property tax.
Property taxes probably won’t price you out of a home, but they are a good thing to keep in mind. As you create your budget for your home, don’t forget about property taxes. Talk to your real estate agent and loan officer to figure out how property tax will affect your home buying experience.