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It’s that time of year again—you’re about to get your property taxes notice.
Because most people’s property taxes are paid through their mortgage company, they don’t even really pay that much attention to them. You should pay attention to them, though. If you don’t, it could cost you a lot of money.
Only pay the taxes that you should.
How? Once the county sends your bill to the mortgage company, they don’t evaluate it to make sure it’s correct or not. That’s your responsibility. If your property is owner-occupied, your tax rate should be 4%. This is much lower than it would be if it was an investment property, which is taxed at a 6% rate.
That margin doesn’t sound like a big deal, but it can add up quickly. If your property tax bill is $2,000 on your owner-occupied property, it would be $5,000 or $6,000 on an investment property. The county—in its infamous wisdom—has decided that any property that is transferred is transferred for investment purposes, even though less than 10% of them are actually transferred for investment purposes.
When you get your tax bill, verify that your property is classified as owner-occupied and you’re being charged the proper tax rate. If it isn’t, make sure you notify the county so they can make the correction.
If you have any questions about property taxes, please don’t hesitate to give us a call or shoot us an email. We would be happy to help you!
