| Property taxes are determined by what a property is | | | | December of 2007 so you can claim it on your income |
| used for on January 1, market conditions at the time | | | | taxes to reduce the tax liability for 2007. Other |
| and ownership of property on that date. Property | | | | reasons to wait or pay your taxes may also include |
| taxes can increase from one year to the next for | | | | other deductions you may or may not have in a given |
| various reasons. Property taxes have been with us | | | | year. |
| since colonial times when a person's wealth could be | | | | Everyone has different circumstances for needing to |
| measured in the amount of property a person owned. | | | | pay property taxes in a given year. If you usually pay |
| Florida law makes taxpayers responsible for knowing | | | | your property taxes with an income tax return, you |
| that their property taxes are due each year. Voters | | | | need to make sure that you receive the money |
| have rejected higher property taxes time and again, | | | | before the deadline established by your community. |
| but the politicians keep trying. As property taxes rise | | | | If you fail to pay the taxes on time, you will face a |
| by billions a year, these increases will be passed on in | | | | penalty and some interest charges. This is so even if |
| the form of higher rents for tenants - including small | | | | you miss it by one or two days. It is always wise to |
| local businesses like gas stations, dry cleaners, coffee | | | | have an escrow account either established by your |
| shops, family-owned restaurants, and auto repair | | | | mortgage lender or one you have yourself in the bank. |
| shops. | | | | When you pay your taxes you should make sure to |
| Many people pay property taxes in the tax year and | | | | receive a receipt. This is needed for your tax records |
| claim there taxes as a tax deduction on their income | | | | as well as showing proof of payment if the community |
| taxes for that year. For example, the year 2007, you | | | | would ever say you still owe money on your taxes |
| receive your tax bill in December and pay the tax | | | | After paying your property tax bill, you can then claim it |
| immediately. You can then use the taxes as a | | | | on that year's tax return. |
| deduction on your federal income tax. If your wait until | | | | Now, this may be different for every state, therefore |
| January of 2008, you will have to claim the property | | | | you need to read your homestead form very closely. |
| taxes for 2008. | | | | Some states may require that the property tax is paid |
| There are different reasons for paying your taxes | | | | and some may not require proof of payment. The |
| right away, every situation is different. There may be | | | | purpose of the Real Tax Estimator is to provide an |
| reasons for waiting until the following year. Deciding | | | | estimate of real property taxes based upon the |
| when to pay your taxes may be determined by giving | | | | information you enter; including Homestead Exemption |
| consideration to your current tax situation and liability. | | | | and the Homestead Assessment Difference |
| If you are in a higher tax bracket in 2008 than you are | | | | calculations, if applicable. |
| in 2007, you may want to wait and pay your property | | | | The issue of our property taxes has obviously lost |
| taxes in January of 2008. This will help lower your total | | | | momentum. Currently, the 40 percent of homeowners |
| tax liability in 2008. If you are in a higher tax bracket for | | | | at the lower end of the income scale pay more than 6 |
| 2007 and expect to drop into a lower tax bracket in | | | | percent of their income on average in taxes more |
| 2008. | | | | than twice the percentage that the wealthiest |
| You may wish to pay your property taxes in | | | | homeowners pay. |