Land & Lots For Sale | Land.US | Land for sale in the United States

Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages

Property Value & Property Taxes: How They Affect Each Other

It seems every year, property tax season sneaks up on property owners across the country. These taxes are normally approached with surprise and shock, for the process that determines exactly how much you owe in property taxes is less than straightforward. However, this doesn’t have to be the case. If you are dreading seeing your property taxes this year, because each and every year you are confused as to how the amounts you owe are formed you should continue reading below. This guide will take a look at how the value of your property affects the amount of property taxes you owe to your state, and what you can do to redefine this value if you feel it is unrepresentative of your property.

Land Value Tax VS. Property Tax

In relation to property taxes, property value or land value is a figure formed by placing an estimate on how much a particular piece of land could be sold for in the current real estate market. This value includes the price of your land alone, and excludes other factors like your house, vehicles, buildings, or fencing. The easiest way to think about the property value of your land is to imagine what your land could be sold for if it was vacant. However, the property taxes you owe on a given piece of property are not only determined by land value. 

What is Structural Value? 

Unlike land value, in relation to property taxes, the structural value of your land includes the value of your home, garage, fencing, and additional structures present on the property. This value does not include the value of your land itself. The easiest way to think about the structural value of your land is to imagine what each of the structures on your property could be sold for regardless of where they were located. The sum of these figures would provide the structural value for your property. 

How Are Property Tax Values Assessed?

The property taxes you owe for your property reflect a combination of your land’s value and the value of your home. In order to determine the exact amount of property taxes you owe, the property tax appraisal system will combine the property value and structural value of your property. The sum of these two figures will determine the final amount of property taxes you owe any given year. Each year, the land value and structural value of your land can fluctuate. Therefore, one year you may pay more or less in property taxes then you did over the course of the previous few years. 

How Do I Find My Land Value For Taxes? 

The easiest way to find an accurate figure for the value of your land is by having an up to date appraisal done on your land. These appraisals are done by skilled appraisers who know exactly what to look for and how to determine the exact value of a piece of land. One appraiser may be able to determine the property tax land value of your property and the structural value of your property. However, in some circumstances you may need to have two different appraisers come out to appraise your land and your home and other structures separately. 

Eliminating the Confusion Associated with Property Taxes

Property taxes, for most land owners, are confusing. However, as you now know, they do not have to be. In summary, the property taxes you owe on a given property are determined by the sum of your property’s land value and its structural value. To anticipate the demands of your property taxes or to appeal the property tax figures you are being asked to pay, you will want to have a skilled appraiser walk your property and determine its value.