The term “property taxes” usually refers to real estate taxes paid on your home or property. Yet, there are many different types of property an individual can own—and each type of property is taxed differently.
Real estate taxes are the same as real property taxes. They are levied on most properties in America and paid to state and local governments. The funds generated from real estate taxes (or real property taxes) are typically used to help pay for local and state services.
There is a tax on personal property called “personal property tax,” which isn’t the same. Personal property refers to items that are mobile, rather than real property that’s fixed.
Differences between real estate taxes and property taxes
Real estate taxes are taxes paid to anything that is attached to land. Property taxes, on the other hand, are taxes on privately owned property that can be moved and are not attached to land.
Real estate taxes are paid monthly. Say for a homeowner, real estate tax is paid directly to the local tax assessor or with the monthly mortgage payment. Property taxes, on the other hand, are an annual tax imposed on movable assets.
Type of property involved
While real estate tax involves real property, property taxes involve private property.
Real Estate Taxes vs. Property Taxes
We can never evade tax. For this reason, it is important for the public to be informed on all types of taxes and the terms accrued to them, and ensure they know their tax obligations. Matters such as what property is being taxed, defaulter penalties and fines and when the tax must be paid must be adhered to.