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