How Counties Assess Property Taxes!

Posted by Rick Delgado on Monday, June 6th, 2022 at 11:54am.

How Counties Assess Property Taxes

 

Veteran property owners know the sense of foreboding when that nondescript envelope arrives announcing the year’s property tax assessment, but if you’re new to ownership, you may not understand how taxes on your property are calculated.

 

In Mexico, property tax bills don’t come in the mail. Each property owner is expected to pay these taxes yearly. The county issues decreasing discounts in the first months of each calendar year so there is a strong incentive to pay in January as the discount can be as high as 20% and then decrease rapidly in February. 

 

Property, or real estate, taxes are calculated by your county or local government and are an essential source of income to pay for things such as schools, parks, sanitation, emergency services, roads, and local government employee salaries. Each of these entities provides an evaluation of the percentage they need to run the business. These individual percentages are then calculated as an overall “millage” rate that will be used to calculate your property tax bill.

 

In Mexico, property Taxes are some of the few tax assessments which stay at a local level and are not remitted back to the Federal Government to then be re-distributed to the states based on things such as population. 

 

To come up with your total payment for the year, an assessor must assess the value of your property which will then be multiplied by the millage rate to reach the final sum of your tax bill. It’s important to understand that the assessed value is not the same as an appraised value. The appraised value is an opinion of your home’s value provided by an appraiser so that lenders can determine how much they will allow a buyer to borrow.

 

An assessed value is arrived at when the local government determines the value of your property based on whether the lot is vacant or not, whether there are utility services, the type and size of the structure, the size of the lot, and other factors. Assessments occur in one of three ways. The replacement method calculates value based on the cost of rebuilding the property considering current market values. The sales comparison method determines value by looking at sales costs for similar properties in the area. The income method, which is mostly used for commercial or business properties such as vacation rentals, considers the amount of income the property generates on an annualized basis and then divides it by a factor that takes into account the relative industry risk for the income to be realized in the future.

 

Once the value is assessed certain exemptions may be applied depending on local regulations. Some areas for example give resident owners who use the property as their primary residence a reduction in assessed value. Other potential deductions include religious use exemptions or military veteran deductions. After subtracting deductions, the assessor then multiplies the assessed value by the millage rate to reach your property tax for the year.

 

Finally, you should know that if you feel your tax has been improperly assessed, you can usually file an appeal that will require that you document inaccuracies in measurement, gather supporting data from other local sales, and file the required paperwork.

Ivan Young is a writer in partnership with TableBases.com, a leading supplier of metal restaurant table bases for businesses and homes. 


Rick Delgado

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