ADVANTAGES OF PAYING PROPERTY TAX
Basically, Land is a natural resource that existed before mankind walked the earth.
Land values are created by the whole community because of our need to use land for housing, education, public services, agriculture, mining, business, transport, and recreation.
First, we start with understanding the term property tax, which is defined as an annual tax levied by the local government depending on the location and value of the property. It is usually about 1% of the property value.
Property taxes are important because they help finance critical services and other public infrastructure.
Governments assess property taxes based on location and value.
The property tax bill is based on the property’s value; the assessments are conducted annually, or when the property is transferred, the assessed value can be the market value.
And if it happens that your property is being used for religious or spiritual purposes, you may be exempt from paying tax.
Spoiler alert! As home prices continue to increase, which means higher property taxes, it is important that homeowners pay property taxes because failure to comply results in the local government imposing a tax lien on your property that has to be paid within a certain period or else the property gets foreclosed.
And definitely nobody wants that; after all, they have invested greatly in it; why not comply with it?
The tax paid is used by the local governing body to fund water and sewer improvements and provide law enforcement, fire protection, education, road and highway construction, libraries, and other services that benefit the community.
Other advantages of paying property tax include:
Additional tax income for the state can be used for fairness, debt reduction, or welfare programs.
More money for education, healthcare, and technological progress, which can improve the quality of life and economic development in general, goes a long way to supporting the young generation as well as ensuring that there are better medical facilities, among many other things.
More stable and predictable revenue than sales or income tax, which can fluctuate based on consumer behavior and employment levels.
improved overall safety level, as property taxes can discourage speculation and vacant properties.
Read: 5 TYPES OF LAND TAX
