| Property tax is an ad valorem tax that an owner of | | | | collected by an official other than the assessor. |
| real estate or other property pays on the value of the | | | | The assessment of an individual piece of real estate |
| thing taxed. The taxing authority requires and/or | | | | may be according to one or more of the normally |
| performs an appraisal of the monetary value of the | | | | accepted methods of valuation (ie income approach, |
| property, and tax is assessed in proportion to that | | | | market value or replacement cost). Assessments may |
| value. Forms of property tax used vary between | | | | be given at 100 percent of value or at some lesser |
| countries and jurisdictions. | | | | percentage. In most if not all assessment jurisdictions, |
| Canada | | | | the determination of value made by the assessor is |
| Many provinces in Canada levy property tax on real | | | | subject to some sort of administrative or judicial |
| estate based upon the current use and value of the | | | | review, if the appeal is instituted by the property |
| land and this is the major source of revenue for most | | | | owner. |
| municipal governments in Canada. While property tax | | | | Ad Valorem (of value) property taxes are based on |
| levels vary between municipalities in a province there is | | | | fair market property values of individual estates. A |
| usually common property assessment or valuation | | | | local tax assessor then applies an established |
| criteria laid out in provincial legislation. There is a trend | | | | assessment rate to the fair market value. By |
| to use a market value standard for valuation purposes | | | | multiplying the tax rate x the assessed value of the |
| in most provinces with varying revaluation cycles. A | | | | property, a tax due is calculated. These taxes are |
| number of provinces have established an annual | | | | collected by municipalities such as cities, counties, and |
| reassessment cycle where market activity warrants | | | | districts in many locations in the United States. They |
| while others have longer periods between valuation | | | | fund municipal budgets for school systems, sewers, |
| periods. | | | | parks, libraries, fire stations, hospitals, etc. |
| United Kingdom | | | | After determining a budget at the municipal level, a |
| There is currently no ad valorem tax on residential | | | | legislative appropriation determines how the monies will |
| property. Two former systems were dropped | | | | be collected and distributed. After that, a tax authority |
| because of their extreme unpopularity. They were | | | | levies the tax. An appeal is permitted. Equalization is |
| Schedule A income tax, a central government tax that | | | | then considered by a board of equalizers to assure |
| was levied on the imputed rent, that is the rent that | | | | fair treatment. Then a tax rate is determined by |
| owner-occupiers of land would have been receiving | | | | dividing the municipal budget by the assessment role of |
| from a tenant had they not been living in the houses | | | | that municipality. Your tax rate x the assessed value |
| they owned. However, actual (as opposed to imputed) | | | | of your property determines the tax you owe. |
| rent is still subject to income tax under Schedule A; | | | | Some jurisdictions have both ad valorem and non-ad |
| Rates, a local government tax that was levied in | | | | valorem property taxes, the latter representing a fixed |
| proportion to the assessed value of property. This | | | | charge (regardless of value) for items such as street |
| was replaced under the Thatcher government by a | | | | lighting and storm sewer control. |
| poll tax, which proved even more unpopular than the | | | | In the US, another form of property tax is the personal |
| rates, and was replaced by a mixed council tax which | | | | property tax, which can target |
| combines elements of property tax and a poll tax. | | | | automobiles, boats, aircraft and other vehicles; |
| Rates are still (2006) levied on business property, | | | | other durable goods (though typically household goods |
| though some classes of business are exempt. | | | | and personal effects are exempt); |
| Netherlands | | | | inventory; |
| Property tax (Dutch: Onroerend goed belasting or | | | | intangible assets such as stocks and bonds. |
| Onroerende zaak belasting (OZB) ) is levied on homes | | | | In some states, it is permissible to separate the real |
| on a municipal basis in two parts: for the one who lives | | | | estate tax, into two separate taxes -- one the land |
| in the house and one for the owner of the house. | | | | value and one on the building value. |
| When one has a rental home, he/she should only pay | | | | Personal property taxes can be assessed at almost |
| the living part of the tax. The last years lots of | | | | any level of government, though they are perhaps |
| concern are because of the annual raise of this tax by | | | | most commonly assessed by states. |
| more than 10% in some municipalities. As of 2005, | | | | Hong Kong |
| there is a Parliament proposal to retain only the | | | | In Hong Kong, there is a kind of tax named property |
| owner's part of the property tax and to raise it | | | | tax, but it is not an ad valorem tax, it is to be classified |
| annually not more than the inflation rate. | | | | into Income tax. |
| United States | | | | According to HK Inland Revenue Ordinance IRO s5B, |
| In the United States, property tax on real estate is | | | | all property owner shall not be subject to this tax, |
| usually assessed by local government, at the municipal | | | | unless the HK property owner has received a |
| or county level. The assessment is made up of two | | | | consideration, the example is rental income for the |
| components -- the improvement or building value and | | | | year of assessment. The property tax shall be |
| the land or site value. A tax assessor is a public official | | | | computed on the net assessable value at the standard |
| who determines the value of real property for the | | | | rate. |
| purpose of apportioning the tax levy. An appraiser | | | | Year of Assessment |
| may work for government or private industry and may | | | | The period of assessment is from April 1st to March |
| determine the value of real property for any purpose. | | | | 31st of the following year. |
| Tax assessor offices maintain inventory information | | | | Net assessable value |
| about improvements to real estate. They also create | | | | The formula is: |
| and maintain tax maps. This is accomplished with the | | | | Net assessable value = 80% of Assessable value. |
| help of surveyors. On tax maps, individual properties | | | | HK property tax payable = Net assessment value X |
| are shown and given unique parcel identifiers. The tax | | | | Property tax standard rate |
| maps help to ensure that no properties are omitted | | | | Assessable value = Rental income + Premium + |
| from the tax rolls and that no properties are taxed | | | | (Rental bad debt recovered - Irrecoverable rental) - |
| more than once. Real property taxes are usually | | | | Rates paid by owner. |