What are property taxes?

What are property taxes?

Residential Property Taxes

Before the Year 2021 draws to a close, we at eHome want to give you a friendly reminder:

Your property taxes are due!

Local city and county governing authorities issue their invoices for yearly residential property tax dues around October 1st, so you should have received your statements by now. 

The What and Why of Residential Property Taxes

Every year, local governments collect property taxes to help fund public schools, public projects, public infrastructure, and public safety. 

Your property tax rates are based on the City and/or County Property Assessors' valuation of your home and property. 

If you live in the city, you will owe city and county property taxes; whereas if you live in the county, you just owe county property taxes. 

 

Be mindful that the city and county you live in have their own tax rates, not the same ones, and each authority determines tax rates based on so many dollars per $100 of your home’s determined value. 

There is no Reason to Panic (if you have a home loan)

If you have a loan on your home, you have probably already made your tax payments!

You see, most banks will not loan you money to buy a home without a guarantee of coverage for your yearly homeowners insurance and property tax dues. 

Therefore, your lender will collect a portion of your homeowners insurance and property taxes monthly and accumulate the money in an escrow account on your behalf. 

When your lender receives notices from the city and county in the fourth quarter of each year (the same ones you should have received), the lender will pay the property tax in full from your escrow account. 

Your loan statement from November or December of this year should show that your tax payments have been made, so you do not have to do a thing with the invoices you received in the mail! 

Self-Pay by March 1, 2022

If you do NOT have a loan on your property or your lender does not require you to make payments into an escrow account for insurance and taxes, then you should get your property tax bills paid by March 1, 2022 to prevent penalties and fees from accruing.

You can mail-in personal checks or money orders with your paper invoices, or you can drop by your municipal offices in person and pay with personal checks, money orders, credit cards, or debit cards. 

Usually, city and county governments allow homeowners to pay their property taxes online or over the phone with credit or debit cards, too, so check for phone numbers or website addresses on your invoices. 

You’ve Got This

No matter what, you’ve got this covered! We at eHome are giving you a reminder, not a burden. Now that you have the information you need, either make sure your lender is doing their job or that you are saving up your Christmas cash to do yours. 



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