Property (ad valorem) taxes are taxes on real and/or personal property. Real property includes land and any buildings attached to it. Personal property refers to furniture, fixtures, tools and equipment used in the operation of a business. Airplanes are also considered personal property. The Revenue Commissioner is responsible for determining property value which must, by law, be set according to "fair and reasonable market value." Your property is probably not for sale but the local appraiser must set the value of the property as if it were "sold" in an "arms length" transaction between a "willing buyer and a willing seller" neither being under any pressure to buy or sell.
WHAT TO DO WHEN YOU BUY PROPERTY
New property owners often rely on their title company, real estate agent or other representative to properly record and assess their property. The final responsibility is still yours, as the new owner, to see that all the necessary steps have been completed. The steps are:
1. Record your deed in the probate office.
2. Assess the property in the Revenue Commissioner's office as soon as you
receive your recorded deed from the probate office. It must be assessed prior to December 31 and any exemptions claimed for the following year.
3. If your mortgage company has agreed to pay your property taxes, a copy of the tax statements should be mailed to the company as soon as it is received. This will give them complete information to pay the bill for your property. You need to verify they paid the taxes in December.
4. Report all address changes immediately, as well as, any buildings added or
removed from the property to the Revenue Commissioner's office.
Current use value is an exemption which applies to class III property.
Upon application, the property is taxed based on how it is used by the owner without consideration of the potential value of the property. (Current use is applied most commonly to farmland and is generally allowed on tracts of 5 acres or more.) If you have signed current use and subdivide or sell the property in small tracts, the taxes will be rolled back and charged for up to 3 back years.