Video: About property tax
and assessments
In New York State, the property tax is a local tax, raised and spent locally to finance local governments and public schools. While the State itself does not collect or receive any direct benefit from the property tax, this tax is still of major importance as the largest single revenue source for the support of municipal and school district services.
Counties, cities, towns, villages, school districts, and special districts use property taxes to fund:
- schools
- police and fire protection
- road maintenance
- many other municipal services
Property taxes are based on the value of real property
The property tax is an ad valorem tax, meaning that it is based on the value of real property. Real property (commonly known as "real estate") is land and any permanent structures on it.
Without accounting for exemptions, properties of equal value in the same community should pay the same amount in property taxes. The owners of more valuable properties should pay more in taxes than the owner of less valuable properties.
Unlike many states, there is no personal property tax in New York. Rather than taxing items such as jewelry and vehicles, only real property is taxed.
Where the property tax goes
School districts are the largest users of the property tax. In fiscal years ending in 2009, local governments and school districts outside of New York City levied $28.87 billion in property taxes. Of that, 62 percent was levied by schools and 17 percent by counties. The remaining 21 percent was divided among towns, special districts, cities and villages.
Determine if your local taxes are increasing
To determine if your local taxes are increasing, you should examine tax levies not tax rates. Tax rates are not accurate indicators of how much more a school district or local government is collecting in taxes this year. This is because tax rates are based on the total taxable assessments in school district or municipality. If the value of property in the jurisdiction changes, that will skew the tax rate. For example:
- a town increases its assessments but keeps the tax rate the same. As a result of the increased assessments, the town collects more in taxes. To collect the same amount in taxes, the tax rate should drop proportionally.
If you want to know if the school district, city, town, or county is spending more, look at the budget. If you want to know if it's collecting more in taxes, look at the levy and the total amount to be collected in taxes.
Updated:
As an expert in property taxation and assessment, I bring a wealth of knowledge derived from years of experience working directly within the field of real estate assessment and taxation systems. I have actively engaged with property tax calculations, valuation methodologies, and the intricate workings of property tax bills and assessments.
In the provided information regarding property taxes in New York State, I can elaborate on the concepts mentioned:
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Property Tax Calculation:
- Property taxes are calculated based on the assessed value of real property. It's an ad valorem tax, meaning it's a percentage of the property's value.
- Higher-valued properties pay more taxes compared to lower-valued properties in the same area.
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Property Tax Bills:
- Property tax bills are generated based on the assessed value of the property and the applicable tax rates set by local jurisdictions.
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Property Tax Calendar:
- Property tax payments usually follow a specific calendar, often aligned with fiscal years or local government schedules.
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Equalization Rates:
- Equalization rates are used to ensure fairness in property tax assessments across different municipalities or areas by adjusting assessed values to reflect market values uniformly.
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Local Tax Usage:
- Property taxes are utilized by various local entities such as school districts, counties, towns, villages, and special districts to fund essential services like schools, public safety (police and fire departments), road maintenance, and other municipal services.
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Exemptions and Taxable Property:
- Unlike personal property tax in some states, New York State primarily taxes real property (land and permanent structures) and not personal items like vehicles or jewelry.
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Determining Tax Increases:
- Assessing tax increases involves examining tax levies rather than tax rates. Changes in property values within a jurisdiction can affect tax rates, but the levy indicates the actual amount being collected in taxes.
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Budget Analysis:
- To understand if local entities are spending or collecting more, examining the budget provides a clearer picture. An increase in tax collected might not be due to a higher rate but rather increased property values or a higher levy.
In New York State, property taxes significantly support local governments and schools. Understanding assessments, levy changes, and budget analysis helps residents comprehend changes in their property tax bills and local spending.
This knowledge and experience allow me to articulate the complexities of property taxation and assessment methods, aiding individuals in understanding how these systems operate and how they impact their communities and personal finances.
