Common Property Tax Exemptions You Should Know
Introduction
Taxes are a vital part of our society as they help to fund government services and programs that benefit all citizens. However, there are certain exemptions available when it comes to paying property taxes. These exemptions are designed to help certain individuals and organizations reduce their tax burden and ensure they have the resources they need to provide valuable services to the community. In this article, we will look at some of the most common property tax exemptions that you should know about.
Homestead Exemption
One of the most well-known property tax exemptions is the homestead exemption. This is available to homeowners who use their property as their primary residence. The exemption reduces the taxable value of the property, which in turn reduces the amount of taxes the homeowner has to pay. The amount of the homestead exemption varies depending on the jurisdiction, but it can be a significant reduction in the overall tax bill.
Senior Citizen Exemption
Many jurisdictions offer a senior citizen exemption for homeowners who are over a certain age, typically 65 years old or older. This exemption can be in addition to the homestead exemption and is designed to help seniors on fixed incomes reduce their property tax burden. The amount of the exemption can vary, but it is generally based on the value of the property and the income of the homeowner.
Disabled Veteran Exemption
Disabled veterans who own property may be eligible for a property tax exemption. This exemption can reduce the taxable value of the property by a certain amount, which in turn reduces the amount of taxes the veteran has to pay. The amount of the exemption varies depending on the jurisdiction and the severity of the veteran's disability.
Non-Profit Exemption
Non-profit organizations that own property may be eligible for a property tax exemption. This is designed to help these organizations reduce their expenses so they can provide valuable services to the community. The exemption can be based on the type of organization, the value of the property, and the activities the organization engages in.
Historic Preservation Exemption
Jurisdictions that place a high value on historic preservation may offer a property tax exemption for owners of historic properties. This exemption is designed to encourage property owners to preserve historic buildings, which can be expensive. The amount of the exemption can vary, but it can be a significant reduction in the overall tax bill.
Conclusion
Property tax exemptions are an important part of the tax code. They are designed to help certain individuals and organizations reduce their tax burden so they can continue to provide valuable services to the community. If you are eligible for any of these exemptions, it is worth investigating them further to see if they can help you save money on your property taxes.