The property taxes for a new home purchase is determined by state or county assessors office and are based on the assessed value of the property.Assessment values and property taxes for one to three family house are determined by sale prices of similar, recently sold homes. New construction homes and specialty properties are valued base on the replacement costs. The assessment values of condominiums and cooperatives are estimated as if rental apartments. The estimated rental incomes of the units are used to determine the assessment values.
If you escrow your taxes, you should always verify with the town tax collector that the lender has, indeed, paid the taxes when due. It is always the property owner's responsibility to be sure that the taxes are paid, not the bank's. While it is rare that a bank will miss a tax payment, it has happened.
You can pay your tax's by escrowing or by paying them in full at the end of the year. If you escrow your tax's are sent in monthly with your payment and held in an escrow account by your lender. The lender then pays the tax's for you at the end of the year. If you do not escrow you have the opportunity to invest your money all year and profit from it. You do not have that opportunity by escrowing.
Although no one seems to like paying more taxes, the government and the United States Constitution prohibit you from paying taxes on top of other taxes. What this means is that what you pay in property taxes can be deducted from your personal income tax. Having more itemized deductions in some cases can actually move you into a lower tax bracket and lower the percentage that you pay in income taxes. Another tax benefit of home ownership.
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