Rice Business Report April Rice Business Report 2019 | Page 35

RICE BUSINESS REPORT APRIL 2019
Property Tax - Pros and Cons
By Blayne Penton
roperty tax can be the fairest and at the same time the not so fair tax collected by municipalities.
Two of the determining factors of how it can affect what an individual will pay for this type of tax are
where you live and a person's economic condition
Even though we all can appreciate the good points of owning a home vs. renting, when it comes to prop-
erty tax, renting is by far the better option. States will collect property tax on the following
Any additions to the property such as improvements to the land
Any structures that are not permanent to the property
The assessment is commonly made by an exclusive county tax collector in each state. An individual's
property and land will be appraised of its value and subsequently mailed as a tax payment notice. This
usually is paid through a homeowner's escrow amount stated on their mortgage.
Many times this can negatively affect a property or land owner as the taxes in a specific state can some-
times double or triple in amount and leave the homeowner unable to afford to pay their taxes, forcing
them to sell their property or land
People on a fixed income such as Senior citizens who have retired, can be greatly affected by the in-
crease of property tax. The value of their homes increase, but at the same time they find themselves un-
able to pay their taxes because of their reduced income. Unfortunately, property tax doesn't allow much
wiggle room in the event of acts of nature or personal tragedy.
Although 2.3 seems to be the average percentage for property tax, it varies greatly from state to state,
making it seem highly unfair for certain states such as New Hampshire, as it is a high 4.9 percent.
It also seem unfair when states like Alabama pay 1.3 percent and yet just a little distance away in neigh-
boring Georgia would be required to pay 2.6 percent, then even more in Florida at a rate of 3.1 percent
So who determines how the money generated from this income is spent or in some cases wasted? The
state legislatures will determine this along with the decision to increase or decrease property tax and
how frequent it is collected
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