The property tax may be the fairest and at the same time not so fair tax collected by the municipalities.

Two of the determining factors of how much an individual will pay for this type of tax can be affected are where they live and a person’s economic condition.

While we can all appreciate the good points of owning a home vs. renting, when it comes to property taxes, renting is by far the best option. States will collect property taxes on the following:

Any additions to the property, such as land improvements.

the earth itself

Any structure that is not permanent to the property.

The assessment is usually done by a dedicated county tax collector in each state. A person’s property and land will be appraised for value and then mailed as a tax notice. This is usually paid through the amount of the owner’s security deposit on the owner’s mortgage.

Many times this can negatively affect the owner of a property or land, since the taxes in a specific state can sometimes double or triple their amount and leave the owner unable to pay their taxes, forcing them to sell their property or land.

People on fixed incomes, such as seniors who have retired, can be hit hard by property tax increases. The value of their houses increases, but at the same time they cannot pay their taxes due to their reduced income. Unfortunately, the property tax does not allow much wiggle room in the event of acts of nature or personal tragedy.

Although 2.3 seems to be the average percentage for property tax, it varies a lot from state to state, making it seem very unfair for certain states like New Hampshire, as it is a high 4.9 percent.

It also seems unfair when states like Alabama pay 1.3 percent and yet a short distance away in neighboring Georgia would be required to pay 2.6 percent, and then even more in Florida at a rate of 3, 1 percent.

So who determines how the money generated from this income is spent or, in some cases, wasted? State legislatures will determine this along with the decision to raise or lower the property tax and how often it is collected.

Although property tax can absolutely help states with revenue, the amount of property tax to be paid can be a determining factor in deciding where to reside in order to achieve the American Dream of home or land ownership. .