Property Tax Relief Programs
Homeowners can minimize or eliminate their property taxes in several ways. Each state has its own property tax relief programs. For example, states maintain Homestead Rebate or Exemption Programs that allow you to decrease your principal residence's value for tax reasons. Investment or rental properties often do not qualify for homestead exemption. If you fail to pay property taxes, you risk having a lien filed against your home, which eventually can cause you to lose ownership of your property.
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Basics
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Property tax relief programs usually are separate for individual or family residences than for businesses or corporations. As a residential property owner, you likely must pay county and school taxes based on your home's appraised value. One options to reduce property taxes develops if you are at least 65 years old or disabled. Some jurisdictions offer additional relief for disabled veterans.
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Significance
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Market values of homes are dynamic. Your property tax assessment will be made by the appraisal authority in your jurisdiction. If you disagree with your home's value, consider appealing the appraisal. The steps for appeal vary by jurisdiction. You might have to request an updated appraisal and include reasons why you disagree with the current one. Alternatively, you might have to pay for your own appraisal and submit a certified report to prove that the current appraisal is inaccurate.
Features
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Basic relief programs generally are similar to the Pennsylvania system. In Pennsylvania, property tax relief exists for senior citizens who are at least 65 years old by Dec. 31. For instance, if you turn 65 on Jan. 3, then you must wait until the next calendar year to qualify. Pennsylvania also extends tax relief to widows or widowers who are at least 50 years old by Dec. 31. To qualify for relief, you must meet income requirements by not exceeding the total annual household income of $35,000. You also must not owe any property taxes.
Considerations
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Hardship property tax relief programs often target low and moderate income property owners. For example, in New Hampshire, you qualify for tax assistance only if your adjusted gross income is less than $20,000 as a single person or $40,000 if you are married or a head of household.
Potential
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Additional sources of help might be available through nonprofit organizations. You should contact churches and community based programs for local information or referrals to appropriate programs. You also should inform the taxing authority (e.g., about property tax abatement), especially if you have not paid property taxes and quickly are facing a lien or foreclosure. By explaining your situation and inability to pay your taxes, you might qualify for emergency or one-time relief.
References
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